Are you affected according to the Office of National Statistics, UK residents are in £119 billion of household debt.
This doesn’t include mortgage debt but does include everything from credit cards to loans, including hire purchase agreements.
Household debt is on the increase, with so many adults struggling. Whether you have a £100 overdraft or £5000 on a variety of credit cards, you’re included in the UK household debt statistics.
How many households have problem debt?
Problem debt is defined as debt which cannot be repaid. If you’re in a position where your interest payments are higher than the spare money that you have each month, there’s no chance that you’ll ever pay your debt off.
If you’re in problem debt, you need to face up to it. The only way to clear problem debt is to make a change and do something differently, whether you reach out for debt help or consider alternatives like debt consolidation loans.
4% of households are recognised as having problem debt. The actual figure may be much higher. This means that out of every 100 houses, there are 4 containing individuals or families that feel like they’re drowning in debt.
What about the average household debt?
The average household debt in the UK is £9,400. But, importantly, that’s not what really matters. To some people, £9,400 of debt could be cleared within 6 months. To others, that same amount would be simply impossible to clear. Even £200 can be too much debt if it’s beyond what you can reasonably clear.
What are most debts?
Most debts are loans, including student loans. Together, these debts make up more than half of all UK household debt.
After loans, credit cards are our biggest debt problems. Only a small amount of UK debt comes from overdrafts and payment arrears.
For people in debt, this offers some reassurance. The kinds of debts that are the biggest problems are debts that can be managed in other ways. Debt consolidation loans can pay off loans and credit cards, converting them to one monthly payment. When your debt’s all in one place, it’s easier to manage and you can set your monthly repayments at an affordable level.
People on all incomes can struggle with debt, and so many people are affected. If that includes you, could debt consolidation help you to take back control?