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New figures from Confused.com have found that people now owe more than they earn in a year – a worrying fact and one that must be changed as soon as possible.

Research from the comparison website has found that, on average, for every £1.00 earned in each year's salary, a person will owe £1.02 in debts.

The worst offenders are residents in Kingston-Upon-Thames, who owe 169% of their annual income, while people from Manchester owe 51% in debts of every pound earned in their annual salary.

Residents in Surrey's Camberley are the most happy in spending on the plastic with the average person owing more than £2,000 on their flexible friend. And as credit becomes less readily available, residents of Chester-le-street are left with debts from previous credit, owing a whopping £3,340 for hire purchases and loans.

Gemma Stanbury, head of savings, loans and debt at Confused.com says: "This study provides a significant insight into the lending responsibilities and borrowing commitments of people in the UK. As we face continued uncertainty and increased financial pressures, it is good advice for all to become more aware of what they are spending and on what. If debt problems are spiralling, debt management programmes are available which will allow consolidation of your debts, requiring a fixed monthly payment."

Every borrower should write down all their income, outgoings and debts – if debts outweigh everything else, it's time to change your behaviour. Talk to a financial adviser about taking steps to redress the balance and to get your cost of living under control.

Those who allow spending and debt to take over will be the ones who fall deeper and deeper into trouble until repossession and bankruptcy are not far away. So don't let your spending and your debts take over – take control and turn the tables on debt.

SOURCE: Confused.com, 27/05/09

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