Troubling Statistics for UK Personal Debt Unveiled Yet Again

The United Kingdom has been struggling to keep debts manageable at the consumer level for some time, but many factors appear to be making it difficult for the average person to dodge debts. Recent statistics have been put together by Credit Action, and these show that the average debt per household in the UK today stands at over £55,800. This figure does include mortgages as part of personal debts and is shocking to see, particularly since it has been shown that at the end of June 2011, the total personal debts owed in the UK stood at over £1.45 billion.

Why is this figure so shocking? Analysts say that this level of debt is comparable with entire output of the UK economy between the 2nd Quarter of 2010 and the 1st Quarter of 2011. While the overall levels of debts owed by consumers has actually slid by nearly £6 billion over the past year or so, financial experts say that the reason for this decline is actually IVAs (Individual Voluntary Arrangements) and similarly formal debt solutions. This shows that these solutions have helped to write off a massive amount of consumer debt, something that offers a real glimmer of hope to those still struggling with debts in the UK right now.

The statistics for those struggling in the UK today are truly staggering. The Citizens Advice Bureau is sawmped by requests for help with more than 9,000 requests made each day. This means that every 5 minutes a new consumer is declared either bankrupt or insolvent – not a pretty picture for the UK economy by any means.

Some critics have said that it should be noted that figures for bankruptcies have actually been in decline. Analysts, however, are quick to point out that this could be due to the fact that a bankruptcy costs £700 as opposed to the £100 it cost in the past. Instead, many people are finding an IVA to be the solution which can meet their needs, with over 12,000 IVA’s being made in 1st Quarter of this year alone.

The Office of Budget Responsibility has also stated that they believe debts in UK households are going to increase. In fact, by the conclusion of 2015 the OBR predicts that household debt will have hit well over £2.1 billion, a figure that means average debt per household would be over £80,000. In addition, with the UK growing at a rate of over 1,200 new citizens per day through 2021, the economy will be dramatically affected, making it all the more important for consumers to get their finances straightened now.

Credit cards, unsecured personal loans and finance deals for cars or stores are a prime culprit for debt today. If you need help, please explore this site for links to services that can help you. There is no reason to go it alone when expert debt assistance is available and proven to help people get back their financial security and their peace of mind.