Unsecured debt reaches new high
Working families on average worse off today than before the financial crisis. This means millions of households with personal debt are reliant on borrowing to get by.
Analysis published by the TUC shows that household debt rose sharply over 2018, with unsecured debt (debt other than mortgages) reaching new highs.
Average household unsecured debt rose by £886 to £15,385 in the third quarter of 2018. In the same period, total unsecured debt rose to £428bn, a record high, and well above the £286bn peak in 2008 ahead of the financial crisis.
Caroline Siarkiewicz, Director at the Single Financial Guidance Body, commented:
“These figures show the level of personal debt is increasing. What our research shows is there are now more people struggling with their debts, and that less than a quarter of them seek help.”
Don’t wait for your debt to get out of hand
She goes on “Whether you are worried about your own situation or know someone else who may be struggling, talking about debt is a really difficult but hugely important first step. Seeking advice as early as possible can prevent problems spiralling out of control.”
[Money Advice Service 07/01/2019]
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