UK Debt Still Increasing

UK Debt Still Increasing

Debt charity Credit Action has unveiled new statistics revealing that personal debt in the UK is continuing to rise, although the rate at which it is doing so has slowed down.

The increase in debt slowed by 0.1 per cent between July and August, lowering the annual rate of increase to 0.8 per cent.

This leaves the total of UK personal debt at £1,457 billion.

Credit Action has also revealed that the average household unsecured debt in the UK for people using credit stands at £21,457, with the average UK citizen owing £4,760 in unsecured borrowings and paying as much as £2,645 each year in interest payments.

It’s no surprise then, that people are seeking advice on how to solve their debt problems. Debt Management and Consolidation Plans, as well as loans and credit cards at lower rates of interest are all potential ways for people to get to grips with their financial situation.

Credit Action recently announced that, during July, one person was declared bankrupt or insolvent every 3.97 minutes. One solution which could help people avoid bankruptcy is an IVA (individual voluntary arrangement.

The IVA is a legally-binding and government-backed agreement between the person who owes money and their creditors. It involves paying one monthly amount to a debt management company which divides the money up fairly among the creditors.

As people who have debt look towards brighter futures, a recent survey by Simplyhealth discovered that over a third of Britons are regretting not being more responsible with money in the past.

The Bothered Briton Report, which looks at how attitudes and behaviour towards money and health have changed over the last 12 months, said 36 per cent of those surveyed wish they had taken more care with their finances.

Raman Sankaran from Simplyhealth said: ìThe recession has made people re-evaluate their priorities in life and what is important to them. With job insecurity rife across all industries, it is no surprise that people regret being careless with money, but with people stating that they also wish they had invested in healthcare and dental care, it demonstrates there is a real demand for affordable health insurance in the current climate.”

Compare Debt Management, IVAís (individual voluntary arrangements) and Debt Consolidation Loans and what you can do if you have been refused credit.

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