UK family debt up by 48% in 2011
Study shows that typical family debt, excluding mortgages, is now £7,944
The average debt owed by UK families has increased by 48 per cent over the past 12 months, according to new research.
Insurance firm Aviva has published its Family Finances report which shows that the typical family debt, excluding mortgages, is now £7,944, compared with £5,360 in January 2011.
The figure, which includes credit card debt, overdrafts and other personal loans, accounts for around a third (32 per cent) of average annual household take-home income.
Although families have benefitted from a seven per cent rise in income over the last 12 months to take home an average of just under £25,000 a year, the rising cost of living has cancelled out salary rises.
Louise Colley, head of protection sales and marketing at Aviva said: "While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning families are struggling to keep up.
"Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas."
Posted by Jack Ramsey
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