Nine out of 10 people in the UK are comfortable with their debts while one in five expect to reduce their borrowing over the next 12 months, research by MyCallcredit reveals.
The telephone survey asked people how much they owed, how comfortable they were with their debts and where people think they will be in a year.
It found young people are the least optimistic about their financial position, part-time workers are the most likely to be out of their depth and there is a significant minority of Britons who are overindebted.
MyCallcredit director Alison Nicholson said: “Three times as many people expect to reduce their debt burden over the next year than expect it to increase, which is good news.
“However, there are some people who expect their situation to get worse, one in four people between 16 and 24, and one in seven people who aren’t working, expect more of their income to be spent on unsecured debt repayments in a years time.
“This is bad news for the housing market as it will put further pressure on first-time buyers and delay their entry into the housing market.
More than one in two people (55.8%) know exactly how much they owe on credit. Nine out of 10 people (92.7%) say they are comfortable with their levels of debt. One in 13 people (7.3%) say their debts are a struggle or they are out of their depth.
One in 15 Britons (6.5%) think they will be spending more than they do now on unsecured debt repayments in 12 months time.
People who are not working and have credit commitments are the most likely to say they are struggling financially or out of their depth (15.4%) followed by part-time workers (10%).