New data reveals the average Brit is £1,228 in debt

Debt is a word that can cause panic, anxiety and dread – but now new research from the savings platform Raisin UK has uncovered the nation’s attitude towards debt.

The research by Raisin revealed that the average person in Britain is £1,228.78 in debt – which across all adults in the UK equates to over £65 billion.

The research also revealed that 1 in 10 people prefer to bury their heads in the sand when dealing with debt, hoping the issues will resolve themselves without any action.

Concerningly, over a quarter of people surveyed (28%) believe they couldn’t identify any patterns or habits in their spending behaviour that may have contributed to debt accumulation—meaning if they don’t know the cause of debt, they’re in danger of repeating that behaviour.

While technology may have made managing our money easier, 1 in 5 (20%) UK adults agree that constant reminders about payments and push notifications about their spending cause sleepless nights.

Plymouth emerged as the UK’s debt capital, with residents averaging £1,876 in debt. Cardiff was a close second, with residents averaging £1,833 in debt, while Belfast was third, with residents averaging £1,832 in debt.

Conversely, Brighton was revealed as the city with the least debt, with residents averaging just £675 in debt.

Compared to the rest of the country, the average person in Britain is £1,228.78 in debt – which across all adults in the UK equates to over £65 billion. People aged between 35 and 44 also revealed that they have the highest level of debt (£1,912) compared to all other age groups.

However, it’s not just our bank balances impacted by debt, as 1 in 4 people agree that our spending habits have a direct impact on their mental health.

Savings expert and co-founder of Raisin UK, Kevin Mountford, commented on the recent findings and advised on how households can navigate their finances to avert away from debt and build a better relationship with their money:

“Debt is a significant issue that can profoundly impact both financial stability and mental health. Our recent research highlights some concerning trends, with this avoidance demonstrated often leading to a cycle of worsening debt.

“To help overcome these challenges, Brits must develop a more proactive approach to overcoming debt and dealing with personal finances. Here are some different ways to help navigate your finances effectively and build a healthier relationship with money:

Face the facts: Avoiding debt will not make it disappear. It’s important to confront your financial situation head-on and understand the full extent of your debt. You can also check out our free debt guide for more advice.

Track your spending: Use technology to your advantage by closely monitoring your spending habits. Identify patterns and areas where you can cut back. You can do this through a range of free apps and platforms or create a spreadsheet to track your spending and frequently check your bank statements manually.

Create a budget: Establish a realistic budget that accounts for all your expenses and stick to it. This can help prevent overspending and ensure that you live within your means. It’s essential to make these budgets realistic to your situation – creating budgets you won’t be able to stick to will only demotivate you and worsen your relationship with money.

Seek professional advice: If you’re struggling to manage your debt, consider consulting a financial advisor. They can provide personalised strategies to help you reduce debt and improve your financial health.

Focus on savings: Prioritise building an emergency fund to safeguard against unexpected expenses in the future. Even small, regular contributions can accumulate over time and provide a financial cushion. It’s essential to make your money work harder, helping improve this emergency fund so you can tackle whatever challenges you face in the future.

“By taking these steps, you can work towards reducing debt and achieving greater financial stability. Addressing debt proactively is essential for your financial and overall mental health. It’s important to talk about money worries, whether with confidential helplines, family, friends, or even your bank.”