Debt free by the end of January? Quarter of Brits planning to clear debts in 2024 aim to do so by 31st Jan

Halfway through the first month of the year, new research from Tesco Bank reveals one in four (26%) people aiming to be debt free in 2024 expect to have cleared their borrowing by the end of January.

Nearly half (49%) of the population have some form of unsecured debt, including credit cards, borrowing from friends or family, loans, and Buy-Now-Pay-Later (BNPL), with the average person £4,340 in debt. It’s those in their mid-30s, 40s, and early 50s that have the highest levels of borrowing, with an average of £4,930 in debt, while those in their 20s and early 30s average £3,680 in debt.

Three in 10 (30%) borrowers hope to be debt free by the end of 2024, and while many expect to clear this debt soon after the festive period, others have longer timelines. 17% are planning to be clear of debt by spring, for 20% summer is the milestone and 14% want to clear debts ready for 2024’s festive season.

As part of the research, Tesco Bank looked at whether people are aware of the different options available to manage debt. The research found that 30% of people don’t understand how debt consolidation works and that perceived high interest rates (14%), lack of awareness or understanding (9%) and affordability (9%) are all barriers to more people using debt consolidation loans. Worryingly, embarrassment and stress around debt remain a barrier for 6% of people.

Though most of those with unsecured debt are optimistic about clearing any borrowing this year, 32% expect to carry some debt into 2025.

Ban Mahsoub, Spend & Save Director at Tesco Bank commented:

“Debt is something that many of us manage in our day to day lives and January is often the time when we try to get on top of our finances. And that’s especially true if it’s causing any stress or anxiety.

“It’s important to check your current financial picture, identify any areas of concern, spot where any unexpected spending might crop up, and make a plan to manage your money through 2024. And if you think it will take you into 2025 to pay off your borrowing this plan is even more crucial. Listen to any niggling money concerns you have and make the first move.

“It might be speaking to your credit card provider about your repayments, taking out a debt consolidation loan to bring the repayments into one place, or if you’re worried and don’t know where to turn, speaking to an independent debt charity who can help with free impartial advice.”

Research conducted by Opinium Research on behalf of Tesco Bank. Sample was 2,000 UK adults (aged 18+). Fieldwork was undertaken 31 October – 3 November 2023. All data has been weighted to be representative of the UK population.