Personal and household debt in the UK on the rise

Personal and household debt in the UK on the rise

Recent reports have shown that the level of personal and household debt in the UK for the month of January rocketed, as households struggled to cope with soaring living costs whilst also having to deal with the debts accrued over the Christmas and New Year period. According to recent figures the level of personal debt stood at a whopping £1.456 trillion at the end of January this year, which was up from £1.452 trillion at the end of January 2011.

The figures were released by the debt charity, Credit Action, with officials stating that part of the reason behind the increase in household debt was the fact that people were getting into even deeper debt because of their financial situations. At the end of January each UK household owed £7,975 up from £7,951 in December, which excluded mortgages.

Although these figures make for bleak reading, the data also showed that between January 2011 and January 2012 the outstanding level of debt on unsecured lending fell by £5 billion. This included debts owed on credit cards and loans. However, the number of insolvencies has increased to one person every 62 seconds or 318 people per business day. The data showed that between October and December last year there were 1797 people being made redundant on a daily basis.

The rising cost of living has resulted in the number of people struggling with their debts soaring to sky high levels. The cost of everything from food and clothing to running a car has rocketed over the past couple of years, which has left many households struggling to keep on top of their payments and financial obligations.

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