The 2022 Household Debt Report: UK Statistics
- The brand new ‘2022 Household Debt Report’ from NerdWallet UK reveals that more than two fifths (45%) of Brits currently consider themselves to be in some of financial debt (not including mortgage debt or student loans)
- Debt accrued through credit cards remains the most common form of borrowing, with more than two fifths (42%) of Brits polled admitting to owing money through credit cards
- Over one fifth (21%) of Gen Z’ers aged 18-24 claimed 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
- Almost half (47%) of respondents currently in debt said the cost of living is their biggest worry, while 41% highlighted the rising price of energy bills as their most pressing financial concern
- Nearly a quarter of Britons are worried about paying for heating and electricity over the next 12 months
- Just under a third (31%) of consumers aged 35 to 44, and 29% of those aged 18 to 24, have previously used borrowed money to pay for groceries
- More than half (53%) of those aged 18 to 24 admit they have had to cut back on costs, or have missed essential payments due to financial strains
- Almost three quarters (74%) of consumers currently in debt admit to a fear of becoming trapped by debt in the future
- One in six (15%) UK consumers rely on Buy Now Pay Later (BNPL) providers as a way to shop now, and then ‘worry at a later date’
The full ‘2022 Household Debt Report’ can be found here
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.
How much debt are you currently in?
| How much debt? | % |
| £0-250 | 6% |
| £251-500 | 14% |
| £501-£600 | 12% |
| £601-£700 | 10% |
| £701-£800 | 7% |
| £801-£900 | 5% |
| £901-£1000 | 6% |
| £1000 – £5,000 | 14% |
| £5,001 – £6,000 | 3% |
| £6,001 – £7,000 | 1% |
| £7,001 – £8,000 | 1% |
| £8,001 – £9,000 | 1% |
| £9,001 – £10,000 | 3% |
| £10,001+ | 4% |
| Prefer not to say | 14% |
Source: NerdWallet UK
With the results of the report indicating that school leavers and students as young as 18 are currently living in debt, the poll asked consumers of different age groups to give a breakdown of the amount of money they owe.
UK age groups by debt owed going into 2023
| 18 to 24 | 25 to 34 | 35 to 44 | 45 to 54 | 55 to 64 | 65 and over | |
| £0-250 | 5% | 3% | 10% | 1% | 5% | 10% |
| £251-500 | 21% | 28% | 12% | 7% | 8% | 12% |
| £501-£600 | 7% | 11% | 8% | 7% | 18% | 19% |
| £601-£700 | 21% | 7% | 9% | 4% | 13% | 8% |
| £701-£800 | 12% | 6% | 3% | 2% | 12% | 6% |
| £801-£900 | 6% | 3% | 3% | 4% | 6% | 6% |
| £901-£1000 | 5% | 4% | 6% | 7% | 4% | 7% |
| £1000 – £5,000 | 6% | 13% | 22% | 18% | 13% | 10% |
| £5,001 – £6,000 | 3% | 1% | 7% | 2% | 4% | 2% |
| £6,001 – £7,000 | 2% | 3% | 1% | 0% | 0% | 1% |
| £7,001 – £8,000 | 1% | 2% | 3% | 0% | 1% | 1% |
| £8,001 – £9,000 | 0% | 1% | 1% | 0% | 1% | 1% |
| £9,001 – £10,000 | 1% | 0% | 1% | 0% | 3% | 11% |
| £10,001+ | 1% | 7% | 6% | 7% | 3% | 2% |
| Prefer not to say | 9% | 12% | 8% | 39% | 9% | 5% |
Source: NerdWallet UK
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.
What are your biggest concerns at the moment? by Age:
| 18 to 24 | 25 to 34 | 35 to 44 | 45 to 54 | 55 to 64 | 65 and over | |
| Cost of living | 31% | 35% | 52% | 54% | 51% | 38% |
| Energy bills | 30% | 27% | 43% | 44% | 49% | 40% |
| General financial situation | 30% | 25% | 32% | 24% | 27% | 20% |
| Physical health | 21% | 21% | 25% | 19% | 27% | 28% |
| Family’s health | 26% | 22% | 25% | 19% | 23% | 25% |
| Mental health | 25% | 23% | 29% | 20% | 22% | 17% |
| Relationships (with family, friends, partners etc.) | 24% | 20% | 17% | 10% | 19% | 12% |
| Work | 20% | 25% | 21% | 13% | 14% | 9% |
| Rising interest rates | 16% | 14% | 20% | 13% | 17% | 12% |
| Education | 21% | 15% | 14% | 8% | 10% | 9% |
| Credit score | 18% | 15% | 13% | 7% | 10% | 9% |
| Friendships | 19% | 13% | 11% | 8% | 8% | 9% |
Source: NerdWallet UK
While just under a quarter (24%) of Brits polled are worrying about paying for heating and electricity over the next 12 months, 49% of those aged 55 to 64 and 40% of those aged 65-plus disclosed that it was among their biggest concerns at the moment.
As well as this, the Report reveals what UK consumers are most commonly using borrowed money for during the ever-increasing cost of living crisis.
It has been revealed that just under a third (31%) of consumers aged 35 to 44, and 29% of those aged 18 to 24, admit to borrowing money to pay for groceries. About half that amount, 15%, of those aged 25 to 34 say they bought groceries on credit.
Gen Z Brits are feeling the biggest financial impact from the cost of living crisis
More than half (53%) of those aged 18 to 24 admit they have had to cut back on costs, or missed essential payments. And worryingly, more than two thirds (69%) also predict they will likely need to acquire further debt to deal with future financial pressures.
However, consumers aged 25 to 34 appear to have experienced the least impact from the cost of living crisis, with 64% saying that they don’t yet feel the need to cut back or miss any essential payments.
UK consumers fear getting into debt
With a looming recession, rising interest rates, and fewer people able to save money for a rainy day, many households have expressed concerns about falling into problem debt.
The report by the personal finance experts at NerdWallet UK reveals that almost three-quarters (74%) of consumers currently in debt fear becoming trapped by debt in the future.
Women were more likely to fear falling into problem debt than men. The report shows 60% of women admitted to debt concerns compared with just 41% of men.
Brean Horne, personal finance expert at NerdWallet UK, said:
“Borrowing allows us to pay for goods and services without having to cover the upfront cost ourselves. It’s very common for consumers to have some form of debt – but it’s important to ensure that you can afford repayments before taking out any credit agreement. Borrowers who manage their repayments and pay off their debt on time are unlikely to run into any issues. However, shoppers purchasing more than they can reasonably afford may be putting themselves at risk, especially as the cost of living continues to rise.
“If you feel like your debt is piling up and becoming unmanageable, it’s important to seek help and take action immediately. There are many tried and tested ways to get your finances back on track, including prioritising or consolidating any outstanding debts, as well as speaking to your lenders to discuss your specific finances and realistic repayment options.
“Customers tempted to use different forms of borrowing should take note of all terms and conditions and make sure they understand how much they’ll be repaying and when.
“Calculating your overall debt can seem daunting, especially if you have fallen behind on your repaymentss. But understanding how much you need to repay can help you make a plan and take action to clear your debt.
“Once you know how much you currently owe, the next step is to make a budget to work out your monthly income and spending.
“You don’t have to struggle with debt alone. There are lots of resources and services to help you pay off what you owe. Contacting a free, independent debt charity or service will help you find the support and guidance you need to get your finances back on track. A debt adviser will be able to talk through your financial circumstances and help find the best way to deal with your debt.”
Methodology and data sources:
A nationally representative online survey of 2,000 UK adults aged 18 to 65-plus was conducted by OnePoll on behalf of NerdWallet UK in October 2022, to find out about the level of consumer debt and concerns about the increasing cost of living.