Debt reaches more British houses

Published on 1 January 1970 by Raffick Marday

New research shows that an increasing amount of UK homes are finishing the month with little disposable income after paying off bills and debts.

Over one million more British households (1,050,000 people) are in danger of debt now compared to last year, according to the results from the poll conducted by Legal & General.

Data also shows that while in September 2007 six out of ten (60%) households were financially stable – meaning that they had some money left over after paying bills and debts -, this figure dropped to 45% last September.

“The continuing financial turmoil has created millions of households, for whom just paying bills has become a real struggle,” said Mark Gregory, Legal & General Executive Director Savings.

Furthermore, Gregory added that in their last August survey over half of the households questioned said they were either “contemplating using some savings to meet mortgage payments if rates go up” or “considering cashing in some savings to pay rising household bills and high fuel costs.”

Increasing debts

In addition to this, additional research published by the money education charity Credit Action revealed the level of debt in the UK on a month-by-month frequency and showed the key trends and figures related to UK family debt.

October debt statistics showed that the average household debt (including mortgages) is £55,822. Furthermore, £29,546 is the average amount actually owed by every UK adult (including mortgages) and £175m is the personal interest paid in the UK daily.

Other figures show that £22.54m is the daily write-offs of loans by banks & building societies and that a property is repossessed every 14.6 minutes. £1,278,000,000 is the total value of all purchases made using plastic cards today including both prepaid cards and credit cards.

One of the best ways to keep your debt under control is by budgeting your expenses and comparing bank account conditions.

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