Almost one in three Brits expect to see out 2025 in debt

• 29% of people think they’ll end the year in debt, owing an average of £5,600
• Those aged 18-34 expect to hold the most debt at the end of the year, owing £6,023
• Credit cards are the most common source of unsecured debt (29%)

Nearly one in three (29%) people believe they’ll end 2025 in debt, according to new research from Tesco Bank.

Those who anticipate ending the year in debt think they’ll owe £5,600 on average. However, a third (33%) of people expect their debt levels to be less than £2,000.

Younger people (aged 18-34) expect to hold the most debt at the end of the year, owing £6,023. They’re followed by those aged between 35-54 years who expect to owe £5,524. Those aged 55 and above expect to hold £5,087 of debt, which is nearly £1,000 less than the youngest age group.

Credit cards are the most common form of unsecured debt (29%), followed by Buy-Now-Pay-Later (BNPL) (12%), and loans/unsecured personal loans (8%). Some 7% of people also owe money to a loved one or friend (7%).

Mamta Shanbhag, Borrow Director at Tesco Bank, commented: 

“When managed responsibly debt can be a useful financial tool. It can help spread the cost of a large purchase, consolidate existing debt and repayments, and even build your credit score.

“Maintaining ‘good debt’ requires careful planning. Make sure your repayments are affordable within your current budget and consider how you would cope if your financial circumstances change. Avoid letting costs rise to a point where regular payments become difficult to manage.

“If you’re worried about managing debt then dedicated charities such as StepChange and National Debtline offer free support. Your bank or financial provider may also be able to help if you contact them. With support you can create a plan to take control of your finances – setting yourself on a path to a positive financial future.”

Mamta Shanbhag shares her tips on how to manage debt: 

1. Prioritise your payments 

Some bills or payments could have higher consequences if not paid on time, so it’s important you prioritise them accordingly. If you have multiple payments due, a debt consolidation loan can make it easier to manage and could reduce the total amount of interest you pay on existing debt payments. The total amount of interest repayable over the life of the borrowing should always be considered alongside this. It’s important to seek financial advice if you’re unsure whether this is the right approach for you.

2. Set your limits 

It’s important to be honest about what you can afford and set a budget for this early on. Having open conversations with your friends or family and setting limits on what you’re comfortable spending is key to avoiding unnecessary debt.

3. Keep on top of regular repayments

It’s a good idea to set aside some time once a month to review your debt repayment progress and assess any new borrowing you have or need to take. This way you’ll always have a clear plan. It’s good to stick to this healthy habit so you can avoid any nasty surprises and ensure you’re on track with your repayment goals.

4. Speak to the experts

Try getting in touch with Citizen’s Advice or Step Change, who both offer free, impartial advice on how to deal with debt. Your bank or financial provider may also be able to help with some solutions that you’re not aware of. Start by looking at your own provider’s website or give them a call directly to discuss your situation.

Methodology 

Research conducted by Opinium Research on behalf of Tesco Bank. Sample was 2,000 UK adults (aged 18+). Fieldwork was undertaken between 18th and 22nd September 2025. All data has been weighted to be representative of the UK population.