Britons In Debt Ignorance
New figures from Mintel reveal that Britons are in twice as much debt as they think they are. When the subjects of the research were asked to estimate just how much money they thought they owed in unsecured debts such as credit cards, overdrafts and loans, the average UK adult replied that they thought they owed £5,251. However according to figures from the Bank of England, the average adult in the UK owes an average of £10,300. This goes to show that many Britons are underestimating the amount owed on their unsecured debts.
When those with mortgages where asked how much of their loan was outstanding many of the mortgage holders estimated that they had around £92,000 left on their loan to pay back before they owned their property outright. Figures from the Bank of England show that the average cost owed on a mortgage is £95,000. Those with mortgages were more aware of the amount owed on their home loans than they were of their unsecured debts. Those with mortgages are able to keep tabs on their mortgage, as it is such a large sum. However, those with unsecured debts such as credit cards, overdrafts and personal loans may find it harder to keep tabs on credit cards, pay day loans or car loans than it would be to keep an eye on one single mortgage payment. Many people also place more importance on their mortgage as there is much more risk involved and more at stake should a payment be missed. Although many Brits have a good grasp of their mortgage borrowing, many of them are underestimating the amount they owe on their unsecured debts.