£2.4bn per month in debts repaid by UK borrowers in last six months

The last six months have seen 14% of UK adults repay debts totalling £2.4bn a month, according to new research published by LifeSearch.

This figure rises to 20% for those between the ages of 25 and 39, ‘Generation Y’, as the study labelled.

LifeSearch’s findings, based on a survey among 2,000 UK adults earlier this month, found that they have reaped an average £319 per month, which rises to £469 per month among the over-55s. A further 7% have overpaid on their mortgage, rising to 11% of men and 12% of Generation Y.

According to the study, 39% of respondents claimed to have saved some money in the last six months – at an average of £281 to total £5.8bn a month.

LifeSearch’s research also found that 14% of UK adults have taken out new debt, with 8% on short-term borrowing such as credit cards, and 7% on longer-term borrowing such as personal loans in the last six months. This figure increased to 23% among Generation Y.

Of those that have borrowed more in the last six months, the average sum borrowed was £208 per month, which jumped to £244 among Generation Y. 

LifeSearch chief marketing officer, Emma Walker, commented: “It’s encouraging to see the nation’s health wealth and happiness begin to recover again after a long period of uncertainty and anxiety for so many.”

She added: “It is likely the forthcoming end to furlough and the stamp duty holiday will be felt in the months to come.

“While the record levels of household savings seen in 2020 have fallen as spending has recovered, we’ve found that a significant number of people are still choosing to save, overpay on their mortgage and repay debts, particularly among Generation Y.”

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