Financial Problems Start at £14,416
The latest financial safety net report from Bright Grey has revealed that Britons only consider themselves to have a serious financial problem when they reach a debt level of £14,416.
The figure itself is a clear indicator that the general attitude towards personal debt is extremely poor but there is some reason for optimism as he figure itself has reduced by £1,421 since 2010 when Britons only considered themselves to have serious financial problems when there level of personal debt stood at £15,837.
The report has also revealed that Britons with an age between 35-54 have an even higher personal threshold of debt before they consider themselves having financial difficulties with the level of debt for this age bracket standing at more than £15,590 before it is considered a problem.
Those living in the West Midlands have gone from having the highest regional ‘debt threshold’ of £17,118 in 2010 to the lowest this year, £12,360, a shift of nearly £5000.
Those living in the West Midlands have witnessed the greatest drop in the regional “debt threshold” with the 2010 figure of £17,118, the highest in the UK, now £12,360, the lowest in the UK.
Proposition Director at Bright Grey, Roger Evans, said:
“In the past 12 months, Britons are sitting up and taking greater notice of the wider economic environment. People are more wary about getting themselves into serious levels of personal debt, yet over £14,000 is still clearly a cause for concern.”
“Attitudes are moving in the right direction but there needs to be a sizable shift. As a result, we need to keep control of our finances so we have contingency plans in place if we urgently need access to cash.”
“People are becoming increasingly aware of the impact of high debt yet are still failing take out adequate protection. Britons need to make financial provisions for their future and not live under the hope that state benefits or bail outs from family and friends will allow them to maintain their standard of living if they lost their income.”
“Protection products are cheaper than ever and it is crucial that people recognise the significance of putting an appropriate financial safety net in place.”