TWO-THIRDS of borrowers have unrealistic expectations of how long it will take them to get out of debt, a survey showed.

The average borrower has £11,000 of non-mortgage debt and thinks they will be able to clear this within three years, according to financial website Fool.co.uk.

But the group said that with most people paying only around 13% of their salary towards their debt, it was likely to take 66% of people an average of seven years and seven months to get back into the black.

It added that repaying debt at this rate would mean that people would end up paying back £167 for every £100 they borrowed.

More worryingly, one in five people with debts of more than £20,000 admitted they could not afford to make any repayments at all at the moment.

David Kuo, head of personal finance at Fool.co.uk, said, “It is worrying to learn that two out of three people have taken on debts without fully understanding what is involved or how long it will take to repay the loan.


“For many, borrowing money is as easy as walking through a doorway. But it’s a good idea to ensure that you have a way out before the door slams shut.”

See Original Article

If you are concerned that you have more debt then you can manage to pay and would like some advice on how to deal with it then call us now. We aim to help you get back in control and get on with your life.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk