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Thursday 09 June 2022 3:03 pm  |  Updated:  Thursday 09 June 2022 3:37 pm

Almost 60 per cent of the country is in debt with amount owed rising to almost £4,000 in year ahead

By: Jack Mendel

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Almost sixty per cent of the nation is currently in debt and the average amount owed is set to rise by 11 per cent to £3,834 in the year ahead.

The deepening cost of living crisis is eating away at people’s savings, while average Brits are set to lose almost £1,500 in disposable income a year.

New research by VoucherCodes also showed saving pots are likely to drop by more than £1,300 annually, as the price of food, fuel and rent continues to spiral.

According to the figures, 58 per cent of the country is currently in debt, and the income bracket with the biggest expected increase in debt is those earning between £59,000-£59,999 at 14.2 per cent, just over £5,000.

Those in the lowest bracket of income, £15,000-£19,999, can expect the highest average debt as a proportion of income at nearly 20 per cent.

It also suggests that as debt goes up for millions of Brits, the average amount of disposable income lost will be £124 a month, which equates to almost £1,500 a year.

Many Brits are as a result cutting back on items once considered luxuries such as subscriptions to streaming services, takeaways and splashing cash on restaurants.

“The changes brought on by the crisis are having a profound impact on consumer spending and already perceptions of what makes a luxury item are changing”, said Anita Naik, a saving expert at VoucherCodes.co.uk. 

“Items which have previously been taken for granted, are some of the many items that Brits now deem to be an extravagant expenditure.”


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