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Debt a major worry in 2011

In 2010, failing to repay more of their debts was the British public's number-one financial regret. In 2011, this worry had fallen to number two, with 'not saving enough' taking the top spot.

So says first direct, revealing the results of a survey looking at Britons' biggest financial regrets. Worryingly, it found that people were, on average, less satisfied with their finances in 2011 than they had been in the previous year.

Last year:
• 52% of people said their biggest regret was not saving enough - something which hadn't even made it to the 'top ten' in 2010.
• 33% said not paying off more of their debts was their biggest mistake.
• Not paying into a pension came a distant third, with just 13% of people citing this as their biggest regret in 2011.

Asked which area of their finances they were most unhappy about last year, fully 84% said this was their credit card and loan debt - an increase of 2% on 2010's figure.

"For many people, debt has been a major worry for years," said a spokesperson for the IVA Advisory Centre, commenting on the figures.

"What counts is how you go about addressing that worry - as the survey points out, people are worried about not paying off more of their debts. If they can manage to do so, borrowers can save a lot of money in interest if they pay off debts like credit card balances more quickly than they actually have to.

"Obviously, it also means they'll reduce their actual debt levels faster. Since a lot of people review their finances in January, the New Year is a time when they tend to realise how much more progress they could have made throughout the previous year.

"But not everyone will be able to overpay their debts at all. Many can't even afford their minimum payments, which means they're at real risk of entering a 'debt spiral'. Anyone in that kind of situation should take some professional advice: it may be that a debt solution such as a debt management plan or IVA could be the best approach for them to take."