Family Loan Debts Increase By 48 Per Cent
Ever since the credit crunch hit the UK back in 2007, a growing number of families and individuals have been struggling with their finances and finding it increasingly difficult to stay on top of their personal loan commitments and other debts each month.
A new survey conducted by Aviva on their Family Finances Report, has found that although the average family income in the UK has increased by around 7 per cent over the course of the past twelve months, the average family debt levels on unsecured loans and credit cards has increased by around 48 per cent over the same period.
Despite the fact that many families are trying to pay off their loans and other debts early, the survey found that the typical household loan debt, excluding home owner loans and mortgages has now risen from £5,360 back in January last year, to £7,944 in January this year.
The average net annual income for a typical household in the UK is £24,792, which means that someone with average unsecured loan and credit card debts has the equivalent of around 32 per cent of their net income outstanding in personal debts, without taking their home owner loan into account.
The survey also shows that, fewer families are putting money to one side in the form of savings, whilst personal loan debts are increasing at an alarming rate. This is the exact opposite of how people should be conducting their finances, particularly in the current economic conditions in the country.
Whilst many families are concerned about their increasing loan debts as well as the possibility of losing their job at some point in the near future, six out of ten families have not taken out any form of protection to protect their loved ones against loss of income or cover for their loan debts.
