Average household debt 'set to rise'

Monday, June 7th 2010

The average UK household is now in almost £60,000 of debt, the latest report by Credit Action reveals.

According to June's study by the financial researchers, the typical amount of debt currently stands at £57,915.

However, this is expected to go up before it comes down, with Credit Action predicting that by 2014-2015 this figure will rise to £113,709.

This conclusion was taken after studying March's budget report figure for public sector net debt and does not take into account any potential financial interventions - perhaps increasing the pressure on the new coalition government to act now to prevent household debt almost doubling.

The level of debt appears to be rising constantly, with the report also indicating that total lending in the UK during April rose by £0.4 billion.

Britain's coalition government, formed only last month, was last week praised by the Pensions Policy Institute for the significant ground it has already covered relating to pensions.