Exeter revealed as UK city with highest debt levels

Despite being named by the Sunday Times as one of the top 10 most desirable cities to live in the UK, people living in Exeter owe an average of more than £20,000 each - according to a national free debt advice provider.

Compiling a list of the top 10 UK cities with the highest debts, PayPlan found that people living in Exeter are saddled with debts of £20,375 from credit cards and loans – significantly more than the national average of £13,000, reported in recent figures revealed by the TUC.

The city appeared just ahead of Birmingham (£19,141) and Wolverhampton (£18,960). The full top 10 is as follows:

·       Exeter - £20,375

·       Birmingham - £19,141

·       Wolverhampton - £18,960

·       Leeds - £17,833

·       Durham - £17,657

·       Bristol - £17,332

·       Liverpool - £16,679

·       Leicester - £16,850

·       Manchester - £15,668

·       Sheffield - £14,930

Jane Clack, money advisor at PayPlan and chair of the Institute of Money Advisers (IMA), said:

“It doesn’t matter whether you live in the north, south, east or west of the country – personal debt has now reached crippling levels.

“Our clients often tell us about the damaging effects of unemployment and the eye-watering cost childcare and rent has on their finances. We’re also finding that people are struggling to pay for the basics, such as household bills and food. This makes unexpected expenses, like the car or boiler breaking down, particularly problematic – and often the only option is a credit card or payday loan with sky-high interest levels.

“This data does not include mortgage debt so, on top of their personal debts, people may owe hundreds of thousands of pounds more.”

She added that while London did not appear on the list, there were pockets of the capital where people were experiencing severe financial problems:

“The sheer cost of living in the capital means many householders are forced to survive on credit. Even with the London living wage, low-income earners can find it difficult to pay their rent. The picture is even bleaker for those on benefits, particularly if the welfare reforms are putting a strain on their household budget.

“No matter where you live in the country, I’d urge anyone with debts to seek help as soon as possible to get their lives back on track.”

For further information about how to become debt-free, visit www.payplan.com or free phone 0800 280 2816.