The need for financial advice and financial planning has been emphasised again this week, as new figures reveal that the average UK citizen is now struggling with debts of over £6,000.
These debts do not include larger borrowings, such as mortgage owings. The main elements of the household debt include, on average:
- credit card bills of £1,748
- loans of £3,077 taken to pay for cars, weddings, holidays, and home repairs
- bank overdrafts of on average £518
- finance deal borrowings of £646 to repay the cost of kitchens, furnishings and household goods
Of those surveyed, 47% said their household debts were due simply to the easy availability of credit, which led them to spend more than they earned.
A further 12% of people revealed that their debts had come about because they had lost their job, and a quarter of those surveyed said their credit card bills had arisen as they struggled to pay for everyday necessities, such as petrol and food.
Worst of all, 50% of those surveyed said that they were now able to repay only the minimum amount owed, and that they expected to be in debt for at least four years.
*Source: Lovemoney.com survey of 3,000 UK adults
