A third (30%) of Welsh civilians have been refused some form of credit within the past twelve months

New analysis by Know Your Money has revealed that over a quarter (27%) of Welsh consumers have used a credit card to make a purchase without considering any form of repayment plan. The research found that:

• Over a third (32%) of UK consumers have no idea how they will clear their debts
• A fifth (20%) of Brits have defaulted on their debt altogether. – Over a quarter of (27%) of Welsh consumers have completely evaded debt repayments.
• Analysis suggests Welsh consumers are also frivolous when using debt, with 33% using credit to make purchases without any consideration for future finances. -Consequently, 30% of Welsh people have been refused some form of credit in the past 12 months.
• A quarter of UK adults (25%) admit to missing scheduled debt remunerations.
  Again, Welsh consumers appear to be struggling the most, with 32% admitting to skipping one or more instalments within the past 12 months.
• Northern Ireland and the South East have a better track record with clearing debt: 89% completely meet all their payment requirements.

In an independent survey of over 2,000 UK adults, the financial comparison site found that a quarter (25%) of Brits have skipped a scheduled debt instalment within the past 12 months. Meanwhile one in five (20%) have dodged repayment altogether.

Welsh consumers have proven to be the worst culprits, with a whopping 27% admitting to completely reneging on squaring their debt.

Thoughtless spending could be to blame for Wales’ money troubles; 32% have used credit cards to make purchases without considering the long-term impact on their finances. Consequently, almost half (49%) of Welsh consumers have regretted using credit cards to make frivolous purchases within the past 12 months.

This will likely impact many Welsh financial futures, given that a third (30%) of them have been refused some form of credit in the past twelve months.

Meanwhile, Welsh consumers struggle with punctuality, when it comes to squaring their debts; 32% admit to missing one or more scheduled payments in the past year.

In contrast, Northern Ireland and the South West appear to be more diligent when it comes to debt; the vast majority in both regions (89%) fulfil their payment commitments.

John Ellmore, Director of Know Your Money said

“People are quick to demonise debt, and they forget that it can be a useful tool, when managed responsibly.

“However, I must stress the term ‘responsibly’. It is important for consumers not to enter into debt without thinking about repayment plans. Additionally, banks and businesses must also bear some responsibility. Banks need to be aware of a person’s financial situation before encouraging them to take on debt – otherwise the results could be disastrous.

“By being more open about both the benefits and the risks of debt, consumers and banks can enter into a mutually beneficial arrangement, with minimal risk of missing repayments.”