|
Personal debt in the UK is at an all-time high, as millions of us struggle to keep on top of our finances. But how do your debts compare to others? Are they above the national average? And if so, is now the time to take action?
Statistics from national deb charity Credit Action reveal that the average household in the UK owes just under £9,000. This figure rises up to £58,040 when mortgages are factored in. Furthermore, the charity calculates that the average amount owed by each UK adult, including their mortgage, is currently £30,306.
These debts have led to record numbers seeking help with their finances, although many more have yet to take action on sorting out their situation.
MoneyExpert.com's Holly Robinson said: "Credit Action's statistics reveal that, in each working day, there are 1,000 people seeking some form of formal debt rescheduling and 9,500 new debt problems being addressed by the Citizen's Advice Bureau. It's great that so many people are taking action, however, there are still thousands of people who are reluctant to come forward and address their debts."
She added: "Many seem to be waiting for their situation to worsen, perhaps through redundancy or their income being reduced, before taking any action. But it's important that they know there are solutions in place to help them overcome their money worries and become debt-free. We advise anyone with unmanageable repayments to take action sooner rather than later."
Credit Action says that 1,814 people are made redundant in the UK every day, while a property repossession is made every 11.4 minutes. The organisation also reports that someone is declared insolvent or bankrupt every 3.69 minutes - the equivalent of 390 people every day.
People with debts above the national average should take action quickly. Those with more than £15,000 could be eligible for an IVA - an individual voluntary agreement - in which they enter into a government-backed solution to become debt-free in just five years.
While even those with lower levels of debt could seek some form of debt management plan to ease their financial burden before it gets much worse.
For further free, impartial and confidential advice, visit our debt page.
|