 More than four out of 10 people plan to repay their debts |
More than one in 10 consumers have problems meeting their credit card debt repayments, a survey has shown. But only 2% of people had difficulty meeting their mortgage repayments, the Nationwide report revealed.
Burdened by over �1 trillion of personal debt, 42% of Britons said they planned to repay some of their debts over the next six months.
It seems Britons are increasingly heeding warnings about high levels of personal debt, the Nationwide said.
Debt concerns
"The warning voiced by Mervyn King, Governor of the Bank of England, and recent interest rate rises do seem to be causing consumers to think carefully about their borrowing and how they intend to repay debts in future," Stuart Bernau, Nationwide Building Society executive director, said.
Last week UK personal debt - including mortgages, credit cards and loans - broke through the �1trillion barrier for the first time.
The Nationwide, one of the UK's biggest mortgage lenders, said that average personal debt is now around two and three quarter times people's disposable income, compared with double said income in the early 1990s.
However, the building society added that low interest rates meant that mortgage repayments account for 28% of people's take-home salary, down from 39% in the early 1990s.
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