UK households average debt set to hit £10,000

By March 23, 2015Blog

Figures today revealed that the average UK household will be in £10,000 in debt by end of 2016. A PWC report warned that people’s complacency over managing their debt may lead to a resurgence in debt. The findings were very similar to those put forward by our Financial Fragility Survey which found that in part due to PPI, record low interest rates and renewed consumer confidence, only 8% of people of people have some form of protection for their financial products.

According to PWC’s survey, 1 in 5 people aged 35-44 claimed they were borrowing just to make ends meet and the average credit card balance stood at £1,021 by the end of 2014, just £39 short in cash-terms of its all term high at the beginning of 2010.

As I stated at our media roundtable it is better to fix the roof while the sun is shining. As we showed in our Financial Fragility Survey, 32% and 45% of women would be unable to meet a financial shock of £2000 within 30 days.