Spring Clean Your Finances: How much debt are you in?

financial detox

Currently, the average total debt per UK household stands at £57,9101 and searches for ‘how to become debt free’ have increased by 140% in the last month alone2. But how well do people understand their debt, and are they taking action to pay it off?

A new survey3 by credit management company Lowell revealed that 41% of people in the UK worry about their debt every single day, whilst almost a third (30%), currently don’t know how much they owe.

Despite these concerns, 57% of those surveyed confirmed they plan to take charge in managing their debts this year, prompting Lowell to provide a simple four-step guide for tackling debt head on and achieving a financial detox:

1. It starts by addressing your debt:

Worryingly 16% of UK adults admitted to ignoring their debt for at least a year, during which time further debt is built up and accumulated, making the situation harder to resolve. Start by listing all your debts in order of priority. Priority debts, not necessarily the largest, are those where serious consequences can arise if left unpaid. Finally, calculate the total monthly minimum payment you can afford. If further help is needed, seek advice from a debt professional – you can find helpful support through charities such as StepChange, organisations such as MoneyHelper, or you can alternatively reach out to your creditor directly.

2. Figure out exactly how much you owe: 

Currently, almost a third (30%) of Brits admit they don’t know how much they owe. Finding out this figure and where the money is owed is the starting point for creating a realistic payment plan to reduce the total. Start by requesting a free credit report and checking bank statements to compile a list of creditors. Then, contact the sources of the debt, whether it’s the bank, a buy now pay later scheme, an energy provider, or a payday lender, and collate a table of all unsecured debts to know exactly who is owed.

3. Find the support that suits you:

After receiving support from a debt expert, 35% claimed they instantly felt more comfortable with their finances. The main aim of debt support is to help find the ideal solution to paying it off. One potential option is a debt management plan, which offers a clear path forward, with set monthly payments and an end date for when the debt will be paid off. Regardless of which strategy you choose, it’s important to find the right solution for your situation – debt organisations and charities offer resources and suggestions for credible advice.

4. Now it’s time to start a financial detox:

A financial detox involves cutting out any bad financial habits and cleansing money spending. For example, when paying off debt, it’s crucial to avoid taking on any new debt to stay on track. In fact, 65% of people in the UK claimed they noticed an immediate difference within a month. Setting up a budget alongside debt repayments is the best way to track any outgoings such as groceries and entertainment costs.

For further information on how you can be proactive with your debt, visit here:

Commenting on the tips John Pears UK CEO of Lowell UK said “Problem debt is a key worry, one of the first things people who have reached out for help with their debt say is that they just wish they’d done it sooner. A worrying amount of people in the UK don’t know how to approach their debt, and we hope our advice encourages people to take that first step to acknowledging their financial problems. We would also like to remind anyone feeling financial pressures to reach out for support, and a list of organisations who can help can be seen at

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