Debtors spending over the odds on repayments

Debt is a genuinely unpleasant experience that you’d recommend to no one. And the typical debt struggling person spends 60% of his or her salary on repaying debts each month, a charity has revealed.

The Consumer Credit Counselling Service said that the average person who contated them last year owed debts totalling around 22,476 pounds on overdrafts, credit cards and loan repayments, with monthly repayments of 676 pounds.

The group say that this accounts for on average 58% of their monthly income, which leaves the average debtor just 498 pounds to pay all their outgoings – mortgage, rent, food etc.

‘With average prices continuing to push up the price of living, household budgets are under increasing pressure, and these figures show how difficult it can be to escape debt once it builds up,’ said Delroy Corinaldi, external affairs director at CCCS.

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