One in five Brits have no idea how much debt they’re in – how to get help with your finances
ONE in five cash-strapped adults have no idea how much debt they’re in, new research has found.
A poll of 2,000 adults has revealed 17% would rather not find out the exact figure they owe.
A further 21% don’t want to worry about something they feel they can’t do anything about.
But experts say this is worst approach to have, as burying your head in the sand will only make it harder to pay off your debt.
The research also showed how 16% don’t even bother checking their account on payday because seeing it all fly straight out to pay the bills and debt brings them down.
Another 22% don’t check because they assume their employer won’t make a mistake.
How to cut the cost of your debt
IF you're in large amounts of debt it can be really worrying.
Here are some tips from Citizens Advice on how you can take action:
Check your bank balance on a regular basis - Knowing your spending patterns is the first step to managing your money.
Work out your budget - By writing down your income and taking away your essential bills such as food and transport. If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs.
Pay off more than the minimum - If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker.
Pay your most expensive credit card sooner - If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate).
Prioritise your debts - If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them. Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay.
Get a payment holiday - The majority of major credit card companies are offering three-month payment holidays if you're struggling to meet your repayments. You should always keep paying until you've come to an agreement with your provider. Most lenders will also still charge interest during this time, so be aware that these costs will keep building up.
Get advice - If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Speak to:
- - 0808 808 4000
- - 0800 138 1111
- - 0808 800 9060
While one in 20 don’t even know how to access or get hold of their payslip in the first place.
It also emerged more than one in ten rarely check their account balance before making a purchase, but 16% have had their card declined for not having enough left in their bank.
The research, conducted via OnePoll, also found more than a quarter of people admitted to having a "bury their head in the sand" attitude towards their cash situation.
As a result, 36% are worried about the current state of their finances, and three in ten feel they don’t feel they have everything in order.
Maitham Mohsin, head of savings at Skipton Building Society, which commissioned the research, said: ";We all deal with financial stress differently.
"We understand things can be overwhelming but it’s important to start addressing our financial well-being as much as it is our physical and mental health where there has been such focus in recent months.
"If the problem is left alone it’s likely to get worse and impact on other aspects of life."
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