Unsecured Household Debt At Record High
According to research published by the TUC, the level of unsecured debt per household here in the UK in the third quarter of 2018 reached a record high of £15,385. That figure may surprise a lot of people and does give cause for concern.
That figure has grown by £886 in the space of only 12 months which again is a concerning fact.
Unsecured household debt can be made up of a variety of forms of borrowing including things like credit cards, personal loans, borrowing on bank current accounts (overdrafts), store cards and catalogue purchases obtained using in-house finance.
Another worrying statistic is when you compare the level of household debt with average household income here in the UK. This now stands at 30.4% with this being the highest on record.
Thirty years ago, back in the third quarter of 1988, the average level of unsecured household debt amounted to £3,264. This equated to 21.4% of average household income.
Twenty years ago, back in the third quarter of 1998, the average level of unsecured household debt had risen to £5,456 with this equating to 19.4% of average household income.
Ten years ago, back in the third quarter of 2008, the average level of household debt here in the UK amounted to £11,146. This equated to 27.5% of average household income.
As can be seen, the average level of household debt in relation to the average household income is worryingly high. This is no doubt putting huge financial strain on many families here in the UK. If people are struggling financially then there is free help available from a number of sources such as the Citizens Advice Bureau and debt charities. You could also talk to the lenders providing the finance to see if they can offer any support such as putting the borrowing on a structured affordable repayment program and freezing interest charges. Do not forget that your credit rating could be negatively affected if you do not keep up repayments on the likes of loans and credit cards.