Abacus Daily Debt News

Average debt ‘higher than average earnings’

The average person in the UK will owe two per cent more in debt than they earn a year, new figures have shown.

Confused.com found that for every £1 earned over the course of a year, a consumer will be in arrears to the tune of £1.02.

Manchester was one of the places where the debt-to-salary ratio was at its lowest, with 51 per cent of annual wages owed to creditors.

Meanwhile, people living in Kingston-Upon-Thames had debts worth 169 per cent of their yearly income.

Gemma Stanbury, the website’s head of savings, loans and debt, said that as the economic downturn continues, people need to "become more aware" of their outgoings.

"Where spend and debt can be reduced, efforts should be made to ensure it is done," she remarked.

Debt issues were the subject of 1.76 million enquiries received by the Citizens Advice Bureau in 2008, the organisation revealed earlier this month.

By Chris Trimble