Savings feel the squeeze as debt rises

NEARLY half of Britons have been forced to dip into their savings to help them survive lockdown, according to data from debt adviser Creditfix.

Additionally, it found that on average, unsecured personal debt in England and Scotland had grown by 17 per cent and 14 per cent respectively, as people borrowed more to keep up with their bills.

Creditfix said that almost 30 per cent of the people it surveyed felt they were overspending on items such as energy and eating at home.

In England, Exeter saw the biggest spike in unsecured debt levels, up 149 per cent to an average of £36,044.50, according to Creditfix.

In second place was Cambridge, which saw the average amount owed rocket 129 per cent to £39,418.45, while Southampton saw the third highest increase, up 79 per cent to £20,519.43. People in Glasgow experienced the biggest increase in personal indebtedness in Scotland, up 70 per to £35,800.69. Aberdeen saw a 10 per cent rise in the average unsecured borrowings, up to £22,687.91

Creditfix said that people are concerned about providing for their family and helping relatives who had lost jobs find new employment.

Sonya O’neill, operations manager at Creditfix, said: “While people across the UK appreciate the constraints placed upon them and are trying to be resilient financially, there are concerns as to how long it can be sustained and the repercussions this may have on families.”

Wales bucked the growing debt trend with the average unsecured borrowings falling by 21 per cent.