Important UK Debt Facts
Debt can feel overwhelming, and it’s easy to feel alone when you’re struggling to manage finances. But understanding the facts about debt in the UK can help you see that you’re not alone, and there are options available to help you regain control.
In this blog, we’ll share some key UK debt facts, helping you understand the scale of the problem and providing practical insights into how you can begin tackling your debt. We’ll also highlight the solutions available to you so you don’t have to face this alone.
1. The Average UK Debt is on the Rise
Did you know that the average UK household debt is over £15,000 (excluding mortgages)? This includes credit cards, personal loans, overdrafts, and car loans. With rising living costs and an unpredictable economic climate, many households are finding it harder to keep up with their payments.
As debt levels increase, it’s not uncommon to feel overwhelmed. If you’re struggling to manage multiple debts, some options can help you get back on track and avoid the stress that comes with missed payments.
2. One in Four People Struggle with Overdue Bills
According to recent reports, one in four people in the UK are behind on at least one bill—be it rent, utilities, or council tax. These overdue bills can quickly spiral into bigger issues, such as threats of legal action, bailiffs, and damage to your credit rating.
If you’re struggling to keep up with priority bills, don’t wait until the situation gets worse. There are ways to tackle your arrears and stop the cycle of missed payments. Debt solutions like an IVA (Individual Voluntary Arrangement) or Debt Management Plan (DMP) can help make your payments more manageable and provide a clear path forward.
3. Credit Card Debt is a Major Concern
Credit card debt is one of the most common types of unsecured debt in the UK. The average UK household has around £2,000 in credit card debt, with many people facing high interest rates. If you’re relying on credit cards to cover everyday expenses or trying to juggle multiple credit card balances, it can quickly become unmanageable.
The cycle of credit card debt can be hard to break, especially when high interest rates make it difficult to pay down the balance. If you’re finding yourself in this situation, debt solutions like a DMP can help consolidate your debt and make your payments more manageable, to pay off what you owe over time.
4. More People Are Seeking Debt Solutions
Over the past few years, there has been a rise in the number of people seeking debt solutions such as IVAs, DMPs, and bankruptcy. With rising living costs, job insecurity, and increasing debt levels, many individuals are turning to professional advisors to help them find a solution that works for their circumstances.
It’s reassuring to know that you don’t have to face your debts alone. Professional advisors can offer tailored solutions that help you manage your finances and reduce the stress that comes with dealing with debt.
5. Bankruptcy Is Not the Only Option
When people are in debt, bankruptcy may seem like the only solution. However, it’s important to understand that bankruptcy should generally be considered a last resort. There are alternative solutions, such as IVAs or DMPs, which may offer you a more manageable way to pay off your debts without the significant long-term consequences of bankruptcy.
An IVA, for example, could help you repay a portion of your debt over a fixed term (usually 5 years), with any remaining debt being written off at the end of the agreement. This can provide you with a fresh start without a severe impact on your financial future.
6. Debt Doesn’t Have to Define Your Future
It’s easy to feel trapped by debt, but it’s important to remember that debt doesn’t have to define your future. There are numerous debt solutions available in the UK that can help you regain control of your finances, reduce your stress, and work towards a debt-free future.
Whether it’s seeking advice, negotiating payment terms, or entering a structured repayment plan, there is always a way forward. You can take the first step today and start your journey toward financial freedom.
What Should You Do Next?
If you’re feeling overwhelmed by your debt or unsure where to turn, we are here to help. Our friendly advisors are ready to guide you through your options, providing you with the support and expertise you need to make informed decisions. Whether you’re dealing with credit card debt, overdue bills, or larger debts, we can help you find a solution that’s tailored to your circumstances.
Contact us today to speak with one of our advisors and take the first step toward a debt-free future.