Family debt has almost doubled in the last year

UK families have suffered hugely over the last 12 months as many have seen their average debt almost double.

Many Brits are gripped at breaking point as the cost of living continues to soar, plunging them further into the red.

The latest report from Aviva shows that the average family debt has increased by a staggering 48% in the last year. Despite this, discussing personal finances is the second biggest family taboo in the UK.

The mounting pressure of inflation has squashed incomes, leaving numerous families bursting with debt. The average family debt, excluding mortgages, has rocketed from £5,360 last January to £7,944 today. This is a massive 32% of the annual net income, which stands at £24,792 according to the report. It appears that families are building on their existing debt rather than clearing it.

The typical net income for the average UK family is £2,066, which has increased on last yearís figures. However, not all families have seen this 7% income increase and single parents have, in fact, seen a 22% fall in incomes.

Ultimately, this has left families with little left over to act as savings. The report found that average monthly saving amounts have fallen from £22 to £21. The saving peak was £34 in August 2012, just six months ago.

ìFamilies in the UK are still very concerned by the rising cost of living and levels of unemployment,î said Louise Colley, Head of protection sales and marketing, Aviva.

ìWhile 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,î she added.

Rising living costs are a major concern for families over the next year, as well as redundancy and unexpected expenses. If you are concerned about your family or individual debt levels, you could seek professional advice.

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