Millions of Brits are facing a never-ending road to financial recovery, with over six million (12%) believing they will never be debt-free. That’s according to research from price comparison site, comparethemarket.com.
A growing reliance on credit has led to the highest debt levels in recent history. The average person with debt is in the red by over £8,000 and that’s not even including mortgage repayments - the average mortgage owed is £106,755.
Right now, nearly a quarter (23%) of adults are struggling to make ends meet. 10% have maxed out a credit card and another 10% admit being overdrawn within the past twelve months. The heavy reliance on credit is clearly taking its toll, with 62% admitting to being worried about their levels of personal debt.
Growing debt is creating a vicious cycle, with over a third (34%) already planning on taking on additional debt - in the form of credit cards, loans car finance and mortgages - in the next year. On average, Brits believe that 57 is a realistic age for clearing their debts, although half (49%) see themselves in debt until they are 60 or older.
While being debt free at 57 may seem to be the light at the end of the tunnel for some, this may not leave enough debt-free time to help future generations. In fact, 35% of those polled do not believe they will be able to ever be in a financial position to help out younger family members in the future, breaking the tradition of the bank of mum and dad.
To help people face up to their financial woes, comparethemarket.com has created the “Debt Free Face” Calculator, an innovative tool that calculates at what age a person could be debt-free, and what they will probably look like then!