Scottish Provident’s financial safety net report showed that younger adults have a larger debt threshold of £16,646, while the over-55s’ debt threshold is slightly lower at £14,424.
The report revealed that the West Midlands has the highest regional debt threshold before people consider themselves in financial difficulty at £17,118, compared to £13,459 in Yorkshire and Humberside.
Susan Barclay, head of marketing at Scottish Provident, said: “For the nation to believe they would not be in serious financial difficulty before they reached debt levels of over £15,837 is a worry and it underlines how debt has become too readily accepted in the UK.
“What starts out as a small level of personal debt can quickly spiral out of control, so Britons should ensure they keep on top of their personal spending.”
The research found that just one in five people would turn to an independent financial adviser when making a decision about their finances.
Meanwhile, the report revealed that 62% of Britons would turn to their family for support if they were diagnosed with a serious illness or disability that would put them off work. Around a quarter (26%) said they would contact their local Citizens Advice Bureau to seek advice, while 4% would contact the Samaritans.
Nearly 15% of people surveyed believe that they would be entitled to full or part-time pay from their employers for at least six months to a year should they need to take a long period off due to illness. An alarming 3% think their employers would support their family of they fell ill, and a further 3% said the government would offer them full financial support.
Barclay added: “State benefits are meagre compared to the financial stability offered from a protection product and companies are under no obligation to service the long term needs of an employee.
“It is vital that people speak to a financial adviser who can give the best available advice for individuals to build up a financial safety net, ensuring they have proper protection in place should the worst happen.”
