The debt-worry capital of the UK

The cash-strapped London borough is the UK's capital for borrowers worried about rising debts.

The London borough of Croydon has been revealed as the UK's capital for debt worries, according to a new survey from debt-management business PayPlan.

Ten towns troubled by debt

By analysing calls to its service and grouping them by postcode area, PayPlan has produced a list of the UK's top-ten locations for debt worries. Here they are:

As you can see, the South London suburb of Croydon tops the list of areas where Brits are fearful of escalating debts.

However, borrowers called PayPlan to discuss their debt problems from across the UK, with debt worries notably high in the East Midlands and West Midlands. Even residents of affluent parts of the South East -- such as Redhill (in London's commuter belt) and Brighton -- experience debt problems.

In some months, Payplan received over 10,000 calls from concerned debtors, which is more than 333 calls each day. Callers to PayPlan had average debts (including mortgages) of £83,465, with the total amount of debt the firm tackled in 12 months coming to a whopping £3.4 billion.

To view the scale of debt worries in your area, try PayPlan's interactive UK debt map.

Rising bills and weak wage rises

PayPlan warns that, before the financial crisis, most people seeking debt-management help were on low incomes and living in rented homes. Now, with wages stagnating and the cost of living rising relentlessly, homeowners, young families and retired Brits are being dragged into a 'debt spiral'.

PayPlan noted that while some areas of the country are in recovery, others are clearly still in decline. And as mortgage rates and energy bills rise, more and more people are going to be pushed into problem debt.

Finding free help

Although the UK economy grew by a healthy 1% in the first half of this year, millions of British households are still struggling with outsized and expensive debts. Sadly, PayPlan reckons that, on average, only one in six people with debt problems seeks help from debt advisers.

The good news is that there are several free and unbiased debt-advice charities and non-profit organisations that borrowers can turn to for help. We've detailed the best ones in Where to get free debt advice.

There are plenty of firms that offer decent debt advice but will charge you for it. There's nothing wrong with that, but if you can get the same advice without having to fork out for it, why wouldn't you?

More on debt:

Where to get free debt advice

Six signs you're caught in a debt spiral

Nuisance calls that will make your debt problem even worse

Debt and the cost of breaking up

Overdrafts: the debt problem you didn't realise you had

What to do if your children are in debt