With the cost of living continuing to be a big concern for UK consumers, the personal finance experts at NerdWallet UK have released the findings of their 2022 Household Debt Report, which examines how lingering money worries could be affecting UK consumers now and in the months to come.

NerdWallet UK analysed consumer debt by surveying 2,000 UK adults aged 18+, to find out how much the average person currently owes, and their concerns surrounding the cost of living crisis and their future financial security.

Over two fifths of consumers (45%) stated that they are currently in debt, with credit cards still the most common form of borrowing, with more than two fifths (42%) of Brits polled reporting to owe money through credit cards.

The 2022 Household Debt Report also asked Brits the amount of debt they’re in- with 74% of UK consumers currently owing up to £5,000.

The research found that Gen Z’ers, aged 18 to 24, are accumulating different levels of debt. While just over one fifth (21%) claim to have £600 to £700 worth of debt, one in eight (12%) owe £700 to £800, and almost one in six (13%) are already carrying more than £1,000 worth of debt, despite their young age.

Taking a look at the larger amounts of debt held by older age categories, almost one in three (31%) millennials, aged 25 to 34, state their debt totals less than £500.

What’s more, one in five (20%) millennials and over a third (35%) of those aged 35 to 44 claim they currently owe between £1,000 and £10,000.

Unsurprisingly, results indicated that those aged 65 and over are struggling the least with debt, with almost half (49%) owing less than £700.

Heat Now, Stress Later?

With many concerned about the rising cost of living and whether they will be able to afford their essential outgoings this winter. UK consumers seem to be split when it comes to what concerns them most about their debts, with almost half (47%) of respondents currently in debt saying that the cost of living is their biggest worry, while 41% highlighting that energy bills are their main concern.