Most modern consumers have heard at least a few horror stories about other people winding up in serious debt, but few are aware of how common this problem really is. In Great Britain, the actual figures are pretty startling. In fact, contemporary British households have more debt than they had in any recent years.
In 2017, households across the country were spending an average of around 900 pounds more than they earned. That’s more debt than the country has been in since the 1980s. Nationwide, the Office for National Statistics estimated that citizens owe around 25 billion pounds.
What They Mean
The amount of debt consumers owe to their creditors is posing a unique challenge to the government, which has warned consumers that this kind of consumer credit bubble is entirely unsustainable. Given that inflation is also on the rise while wages are stagnating, modern debtors face serious challenges to getting their finances in order. British households in the 1990s were far more financially solvent, but today’s families are in more debt than most of the rest of the western world.
Debt at Record Highs
Official data regarding unsecured credit like payday loans and credit cards shows that consumer debt reached a record high in 2017 of more than 250 billion pounds. Some consulting firms offer even higher estimates while others point out that the problem is compounded by the fact that savings rates are also lower than they have been since 2011. Over 80 billion pounds of that debt was taken out in 2017 alone, while consumers only deposited around 37 billion pounds in their bank accounts.
National Debt Relief
Although some debtors may be able to get a hold of their finances by reducing unnecessary monthly expenditures like going out to eat or spending time at the movies, many modern households are falling into debt just trying to pay their bills on time. Those who have found themselves in substantial debt should know that they don’t have to go it alone. National Debt Relief is available to help consumers who are struggling to get out of debt.
Learn More Today
Want to learn more about the current consumer credit bubble, what to expect, and how to get out of debt? Check out the article found here to get started.