Consumers positive about managing debt as confidence climbs

Just 16 per cent of people in the region have worries about making payments against debt in future, research from PwC found.

This compared to 28 per cent in the professional service’s firm’s last survey in August 2013.

More people are also looking to save, with 45 per cent planning to put money away in the next 12 months, up from 35 per cent in 2013.

Four out of 10 consumers in Yorkshire pay their credit cards off in full every month, ahead of people in Wales (31 per cent) and the East Midlands (35 per cent).

Only eight per cent of respondents in the region needed to rely on credit cards for food or household bills, down from 11 per cent 18 months ago.

However, there were areas of concern, with some age groups in the region facing greater challenges around debt.

Gary Shaw, PwC’s financial services head in Yorkshire, said 20 per cent of Britain’s 35 to 44-year-olds are borrowing to pay for essential items and bills every month. A two per cent increase in the cost of borrowing could lead to households paying an extra £1,000 year to service debt, he said.

Iwan Griffiths, PwC’s financial services leader in the North said unsecured borrowing is seeing strong growth.

“There is a risk that this combination of increasing household debt to income ratio and future interest rate rises could leave consumers feeling squeezed again,” he added.