In just six months, the amount of household debt in the UK has increased by two-fifths, a report published by Aviva’s Family Finances has discovered. The figures show that the average debt experienced has risen to £13,520, from £9,520 last summer.
These statistics, that don’t take into consideration mortgage debt, are the highest levels for two and-a-half years in the quarterly survey. They show a 24% increase in the average amount owed, in comparison to when the data was first recorded in the winter of 2011.
The report does take into account families’ living arrangements though, and found that single parents on average have the least issues with debt, with the average owing at £5,070. Comparatively, couples that have two or more children borrow the most, with an average debt that sits at £18,830. Alongside this, it was found that the UK also owes an incredible £1.458trn, a figure recorded at the end of November 2015. In the year leading up to that figure being taken, a UK adult had an extra £708.35 added onto their average debt.
The concern is that these rising levels of household debt, coupled with lower levels of income and savings, means financial uncertainty for families in 2016. Alongside this, there is strong speculation that the Bank of England may put up interest rates this year. This means that people and families with debt that are used to cheaper credit will have to prepare for the rates to go up. This will mean a balance between managing debt repayments alongside other monthly commitments.
January is always a tight month financially for most, but it seems this year even more so than ever. This Christmas there was more money borrowed than in any other month since February 2008. Couple that with the long squeeze until payday at the end of the month and it can be a bleak picture. On top of that, Shelter have stated that nearly a quarter of parents either renting or with a mortgage are forced to reduce their heating and clothing allowances in order to meet house costs.
Financial issues sometimes occur through no fault of your own. There are a huge number of factors out there that affect us. What we are able to do about it is carefully respond to the situation with a considered approach that is actually achievable. This is what we do best at Enjay Debt Management, and we’re here to help you along every step of the way.
If you can sense a debt disaster on the horizon, need financial guidance, or are worried about how the changes to interest rates may impact you, give us a call today for some impartial, confidential advice. You can contact us on Freephone: 0800 612 7958 or by email on: firstname.lastname@example.org.