Debt worries are rife in Yorkshire

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Worries about personal debt are haunting almost half the adults in Yorkshire and Humber according to a new study by the insolvency trade body, R3.

“Many people are struggling to afford the absolute essentials” says Gareth Self, a member of R3’s Yorkshire committee and an insolvency practitioner within the P&A Group of Companies in Sheffield.

“Although the economy is starting to pick up, many families are finding themselves left behind, weighed down by the cost of the day-to-day.

“It is hard to see the situation improving over the rest of the year, especially given the run-up to Christmas coming in the autumn.

“There is a sizeable chunk of the population in a very precarious position.

“They are renting, they have no savings, and they are only able to pay off the interest on their debts without making any headway into the principal.

“These people have no financial buffer to cope with any increase in the cost of living.”

More than one in four people in the region say they have no savings and around one in three are worried about credit card debts and mortgage repayments.

R3 says the number of people with no savings had risen from 18 per cent in February to 27 per cent and the number worried about debt is up from 40 per cent to 48 per cent.

Nine per cent say they can only afford to pay the interest on their credit card bills – up from eight per cent – and five per cent are only paying interest on overdrafts – up from three per cent.

“Credit cards and mortgages may still be among the biggest debt concerns, but their dominance has decreased over time,” said Mr Self.