Welsh more likely to struggle with debt
Six out of ten people in Wales have unsecured debts, like credit and store cards, and more than nine out of ten say they are comfortable with them according to research from online credit report service MyCallcredit.
However, nearly a quarter admit they haven't got a clue how much they owe and a higher number than average (8.7 per cent against 6.6 per cent) say they are struggling with their debts.
In addition, more people in Wales are paying between 31 per cent and 40 per cent of their monthly income to service unsecured debt repayments than anywhere else in the UK.
MyCallcredit director Alison Nicholson says:
"The vast majority of people in Wales don't have a problem with their debts but there are signs that some may be in a vulnerable position and need to seek help with managing their finances.
Anyone who is spending more than 25 per cent of their income servicing unsecured debt repayments is considered overindebted according to the Department of Trade and Industry guidelines, so the situation in Wales is a cause for concern.
The industry needs to continue developing more responsible lending practices, like introducing true affordability checks at the time a credit application is made, and individuals need to take stock of their overall financial position to make sure they are applying for credit responsibly."
- Nearly six in ten Welsh people know exactly how much they owe (58.7 per cent against 55.8 per cent across the UK).
- Of the Welsh people who have debts 91.3 per cent are comfortable with them compared to 92.7 per cent nationally.
- No-one in Wales said they were out of depth with their debts compared to 1.6 per cent in Scotland and 2.1 per cent in the Midlands.
- 23.1 per cent of Welsh people haven't got a clue how much they owe in comparison to 19.9 per cent across the UK.
- 6.3 per cent of Welsh people are paying between 31 per cent and 40 per cent of their monthly income to service unsecured debts compared to a UK average of 2.4 per cent.
- Only 4.9 per cent of Welsh folk think they will be paying more of their income to service unsecured debt repayments in a year's time compared to 6.5 per cent across the UK.
- The research was carried out for MyCallcredit by NEMS market research among 1001 adults between 18 May and 25 May 2006.