Divorcees 'In Greater Debt'

Divorcees have the highest levels of personal debt in the UK, a new report has revealed.

According to the research carried out by Alliance & Leicester, divorced individuals spend more on credit cards and personal loans than their married counterparts, with debts taking up more than a quarter (28 per cent) of their annual income.

This compares with just 16 per cent of married couples' income, and also compared unfavourably with single people.

"Carrying a high debt burden at this late stage in working life leaves [divorcees] much more vulnerable," Alliance & Leicester said in a statement.

Chris Rhodes, managing director of the bank's retail division, added: "Splitting up clearly gives rise to a lot of costs, including setting up a new home. This is reflected in the fact that the recently separated have the highest overall level of debt at £6,262.

"However, over the years, divorced people's finances do not seem to improve, showing how long-lived the effects of relationship breakdown can be."

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