Being in debt is no longer a social taboo, but rather an accepted and integral part of modern life. Over recent decades, we have been encouraged to borrow in order to own our own property and so that we can buy the things we want, though not necessarily need, today as opposed to tomorrow. The young have been particularly susceptible to this buy-now-pay-later ideology – our research shows that the under-35s carry the heaviest debt burden and are the least likely to have savings.

When the economy was growing strongly and house prices were continually rising, our confidence was resolute and our desire to borrow seemingly undeterred. Now that economic conditions have deteriorated and more uncertain times are ahead, have our attitudes towards debt changed? Have we lost our appetite for buying property, or are we biding our time until conditions improve? Are we managing comfortably or are we struggling to make ends meet? Do we feel well placed financially to weather any downturn in the economy? Or have we bitten off more than we can chew?

By drawing on a range of sources, this report seeks to answer these questions. It examines the issues, assesses recent borrowing patterns and judges future short-term prospects. The report also presents and analyses the findings of Mintel’s consumer survey, which explores people’s perceptions of their own financial health and ability to manage money and any borrowings they have.

Key report themes:

What’s the size of the UK mortgage lending and consumer credit markets and how have they performed recently?

What factors are driving change in these markets?

How are consumer attitudes and behaviours being affected by the credit squeeze and adverse press surrounding the economy and the housing market?

What types of lending products do people have?

What’s their level of debt?

What proportion are struggling or have over-extended themselves?

How financially capable are they?

What proportion have savings and what proportion are making provision for their retirement?

What proportion expect to take out a new loan or extend their borrowing, and what proportion plan to cut back on spending, over the next year?

What do they think will happen to house prices?