If you are aged around 35 years old, the chances are you have hit a financial wall as you juggle with a mortgage, bringing up a family and paying off debt.
After looking at more than 2.5 million credit card accounts, analysts found 35 was the financial ‘crunch point’ for most people.
Researchers also drafted a financial timeline for the average British adult – starting with university debt at 23 and ending with retirement.
The study found that most people pay back £309,000 of borrowing during their life, including £111,000 of interest.
Borrowing timeline
Here’s the financial map of the average Brit’s lifetime:
- Age 23 –The average age students start looking for a credit card after university
- Age 28 –The age where inquiries for credit cards and loans start increasing, but when most are still earning below the national average wage of £28,200
- Age 30 –When most workers start earning the national average wage
- Age 32 –The most popular time to have a baby and to contemplate the average £230,000 cost of paying for a child until the age of 21 – when the parents hit 53 years old
- Age 35 – Financial crunch time for most young families as the cost of mortgages, raising a family, and borrowing coincide with borrowing to pay off other debt
- Age 39 –Improving rather than moving seems the trend as many borrow to remodel their home rather than move house
- Age 44 –The peak age for divorce, which comes with an average £77,000 bill
- Age 65 –Fewer loans but more borrowing as the number of applications falls but the value of each increases
Credit search every 12 seconds
The data was collected from online searches at web site MoneySuperMarket.
The web site’s editor-in-chief Dan Plant said: “Our Smart Search tool is used every 12 seconds in the UK, which has helped give us an unprecedented insight into borrowing over the average lifetime.
“While it’s clear that people reach a ‘financial crunch’ point at 35, no matter how old you are, it’s always wise to plan ahead and choose your products carefully before you borrow, to make sure you can afford the repayments.”
