Figures released by the Office for National Statistics (ONS) show UK household debt has risen to an average of £9,400, with another study conducted by the Trades Union Congress (TUC) suggesting this figure is closer to £15,400.

Household debt in the UK – at crisis level?

Nationally, the level of household financial debt, which includes overdrafts, credit cards, hire purchase, student loans and personal loans, climbed to £119bn in the two years to March 2018*. This figure excludes property debt (mortgage and equity release secured on property), which alone totals £1.16 trillion.

And whilst debt isn’t necessarily a cause for concern, it is important to consider the extent to which debt is having a detrimental impact on households, and whether the debt can be repaid in a sufficient timescale. Problems repaying debt can have an adverse effect on the household’s wider finances, having a potential knock-on effect to a family’s general stability and living standards.

In 2018, over 115,000 individuals, or one in every 401 UK adults, were declared insolvent due to unmanageable debt – the highest figure for 7 years.

Need help with a debt problem?

We have a dedicated team of experts who specialise in personal debt issues and are here to help. From initial considerations, such as working out exactly what to owe, to implementing formal insolvency procedures, we will strive to achieve the very best outcome for you.

Our experts work alongside you to fully understand your circumstances providing candid, proactive advice that is strategically viable, delivered in a timely manner when needed the most.

Local personal debt advisors

Smith Cooper’s award-winning business recovery and insolvency division is a leading insolvency practice, offering a host of solutions to those facing financial pressure, either personally or commercially.

We firmly believe that prevention is better than cure, and time is of the essence with debt matters, so the sooner we can understand the problems you face, the more likely we are to be able to provide options.

For a confidential, no obligation discussion, please get in touch.

*The ONS study is published every two years. To read the comprehensive study, Household debt in Great Britain: April 2016 to March 2018, published on 5th December 2019, click here.