A new survey has claimed that 1 in 10 Brits will never be able to clear their debts as borrowing hits record levels.
The poll by Money Supermarket found that household debt in the UK is ‘worse than at any other time on record.
Spokeswoman Sally Francis-Miles commented: “Some debts are entered into as part of a financial plan, such as a mortgage, but when an emergency situation leaves them unable to pay, many feel left without a choice and turn to high-cost options such as payday loans or expensive credit cards.
“Money worries can cause extreme stress, and leave people feeling alone and desperate, but there are many advice services available to help including debt-help charities and the Money Advice Service.
“Seeking help and support can make all the difference if you or someone close to you is struggling with their financial situation – there’s always a way out of a debt spiral.”
The survey found that 55% of people in debt worry on a daily basis about how to get out of their predicament.
Around 8% of these problem debtors – approximately 81,000 – have been found more likely to suffer from anxiety or depression because of their financial situation.
Many also feel they have bee treated unfairly by those responsible for collecting their debts with 52% who have been approached by bailiffs claiming to have been treated poorly. This compares to 35% who are dealing with local authorities and 32% who owe payday lenders.
Strangely 41% of those surveyed had never sought help with their debt problems. Most consider them to be at least partially manageable with just 6% feeling they are totally unmanageable.
Just over a third were unable to purchase everyday items and an additional third admitted they could never afford to go away on holiday.
Sadly, 7% felt so badly in debt that they could not consider getting married or having children.
Separate research by the National Audit Office (NAO) has shown that 8.3 million people are unable to pay off their debts and says the Treasury should do more to understand the scale of the problem and how it affects people’s lives.
There are two types of debt – secured and unsecured. A secured debt is usually tied to an asset – like your mortgage is tied to your house – and unsecured debt like a credit card usually comes with higher rates of interest.
The Money Charity puts the average UK household debt at £58,5640 and Britain’s overall debt is now almost £1.6 trillion – up from £1.55 trillion a year ago.