DESPITE talk of economic recovery in the UK, almost half of people across the region remain worried about debt, according to research.

The Chancellor of the Exchequer George Osborne recently announced  that the economy had moved from ‘rescue to recovery’.

However, figures released by insolvency trade body R3 show that 44 per cent of those in the North-East, Yorkshire and Humberside are still concerned about how much they owe.

Concerns around repaying loans, credit cards, overdrafts and mortgages are still prevalent in the minds of many - while 47 per cent of people reported struggling to make their finances last until payday.

Steve Ross, chair of R3 in the North East, said: “Optimism about the wider economy still isn’t entirely filtering through to how people in the region think about their own bank balances.

“The rising cost of living, credit card debts, and rent costs are all preying on the minds of consumers, many of whom are finding that their financial breathing room is becoming smaller and smaller.

“Meanwhile, individual insolvencies have begun to rise again, as has consumer borrowing for the first time in a number of years.”

The research – which examined the opinions of people across the UK about insolvency and debt-related matters – also revealed that more than a fifth of those in the region believe their finances will worsen this year.