Those who are divorced rely on personal loans and credit cards more than those who are married, according to new research.
Alliance & Leicester found that at an average of £2,789 per person, divorcees have the largest personal loans compared to any other group, including those who are separated, single or students.
As a percentage of their income, divorcees have the highest amount of total borrowing at 28.1 per cent, with the highest cost of interest at 4.2 per cent of their income.
Although the research discovered that those who are newly separated have the highest level of debt, Alliance & Leicester’s managing director, Chris Rhodes, said that divorced people’s finances do not improve over the years following a break-up.
“Divorce is financially as well as emotionally costly. Our research shows how severe these financial effects are,” he added.
While married couples have an average of £943 of credit card debt per partner, those who are divorced have £1,550. Although people who are separated have the highest overall debt, the research found that they are 14 years younger than divorcees on average and consequently have longer to pay it off.
According to the Office of National Statistics, the average age of divorcees in 2005 was 43.1 years old for men and 40.6 years for women.
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