Unsecured Debt Levels ‘Rising by £80m Every Day’
October 27, 2017
The collective levels of unsecured debt across the UK are rising at a rate of close to £80 million every day, according to a new set of figures.
The figures come from the consultancy giant PwC, which is now expecting to see the average British household saddled with around £12,500 worth of unsecured debt by the end of this decade.
PwC says that the country’s total unsecured debt mountain is now higher than it has ever been, at close to £300 billion, and rising at a rate of around 11 per cent per year.
The company’s report points out that young people and renters are increasingly finding themselves shouldering a significant unsecured debt burden.
In fact, people aged between 25 and 34 years apparently have on average almost five times as much unsecured debt to worry about than their counterparts aged 55 or over.
Meanwhile, renters are understood to be roughly twice as likely as people who own their homes and pay a mortgage every month to find themselves relying on credit to cover their essential expenses.
A further point raised by PwC in its report is that a considerable proportion of people right across the country could actually be far less financially literate than they believe themselves to be.
In making this point, the professional services firm says that while 60 per cent of people feel that they have a good understanding of mortgages, only 20 per cent can accurately estimate the likely costs of repayments in relation to specific products.
“Our analysis revealed concerning levels of understanding in relation to the cost of everyday lending products,” said Simon Westcott, a consumer credit expert from PwC.
“People’s perception of the cost often underestimated the reality. For example, across all age groups and unsecured credit types, only around a quarter of our GB sample correctly estimated the true cost of borrowing on everyday lending products.”
If you live anywhere in Scotland and are struggling to deal with your debt problems then Scotland Debt Solutions can help. Contact us directly to arrange a free consultation.