Worrying figures released in relation to UK debt

Oct 21, 2019 Personal Debt

Worrying figures released in relation to UK debt

As many households know only too well, the cost of living has soared over recent years, whilst the economic climate has resulted in many people experiencing a drop or a freeze in income. This combination has led to huge problems for many people who are no longer able to make their finances stretch far enough and are therefore struggling to make ends meet each month.

Figures have now been released showing that for some households personal debt levels have shot up over the past year, with debt levels having increased by a massive 48 percent over the past twelve months. The average unsecured debt is said to have increased to £7944, up from £5360 just a year ago. The figures were released by insurance provider Aviva, which carried out a study into the state of household finances.

The study also found that fewer households were now able to save any money as a result of the difficult financial climate, with the number of families failing to save any money at all soaring to a record high of 42 percent. Amongst those that are putting money aside each month, the savings level has dropped from £22 in January of last year to £21 this year.

One Aviva official stated: “Families in the UK are still very concerned by the rising cost of living and levels of unemployment. While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning that families are struggling to keep up. Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts.”

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