According to a recent report a rising number of Brits are falling into increased debt as a result of trying to keep up with the soaring cost of living on wages that have been stagnant for several years in some cases. Many households are struggling to keep up with the soaring cost of living, and some have been left with no other choice but to borrow money on credit cards, loans and overdrafts to fund the rising cost of living.
The report claims that Brits have now taken on the highest levels of debt since May 2009, which was the peak of the recession in the UK. Brits now have around £208.6 billion in outstanding debts on credit cards, loans, overdrafts, etc. which equates to around £9070 of debt for every household in the country. Petrol, food and energy costs are amongst the essentials that have increased in price, putting severe strain on household finances.
Excluding mortgage debt, the level of household debt in the past year has gone up by around £5 billion in total, which is the biggest increase since the recession according to the Bank of England. In the past month alone the level of debt has increased by £629 million in total, with economists stating that people have become reliant on credit simply to keep up with their rising bills.
Tags: unsecured consumer credit, cost of living, debt, Many households, outstanding debts, household debtOne leading economist stated: “The rise in unsecured consumer credit suggests increased ‘stressed borrowing’ is occurring, with more people having to borrow to help finance their spending. This is a consequence of the extended squeeze on their purchasing power coming from elevated inflation, low wage growth and tighter fiscal policy. In addition, job losses are rising.”
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