Millions of people are taking on multiple forms of debt without a clear plan of how to pay it off, new research by KnowYourMoney.co.uk has revealed.
Nearly two thirds (64 per cent) of people in Yorkshire have some form of debt, higher than the national average, with credit cards (38 per cent), mortgages (32 per cent) and student loans (11 per cent) the most common.
The comparison website commissioned an independent survey among more than 2,000 UK adults.
Nearly three in 10 (28 per cent) Yorkshire residents with debt said they do not feel in control of it and have no plan of how they will pay it off, in line with the national average. This figure rose to 45 per cent for people in Wales and 36 per cent for people in the West Midlands.
A quarter (25 per cent) of Yorkshire residents said they buy items on their credit card without first thinking about how they will pay it off later, much lower than the national average of 33 per cent.
Without clear plans or savings, the comparison website said people’s debts are evidently a cause for anguish – 24 per cent of British people in debt said they lose sleep because of it, although this figure fell to 15 per cent in Yorkshire.
To make matters worse, 41 per cent of people in Yorkshire are worried about the impact of Brexit on their personal finances, with this figure rising to 61 per cent in London.
John Ellmore, director of KnowYourMoney.co.uk, said: “Despite the negative connotations that sometimes surround it, debt should not be frowned upon. If handled responsibly, debt is a valuable financial instrument that can help enable life’s purchases.
“However, today’s research demonstrates that there are millions of people across the UK who are taking on debt without a plan of how to repay it, which is unadvisable. It’s vital consumers understand what their debt-to-income ratio is and manage their finances accordingly – this will help them sleep easier at night and avoid serious financial repercussions further down the line.”