Average Household Credit Card Debt

Households' average credit card debt

British budget debt now a all-time high of 13,000 pounds, says TUC. According to the TUC, the average UK budget now owe a whopping £12,887 before mortgage loans are taken into consideration. The research is on the basis of the Office for National Statistics (ONS) data for the three month period to the end of September 2016. AccordingtoONS, the overall uncollateralised debt reached an all-time high of 349 billion at that date.

TUC split this figure by the overall number of UK homes. Their numbers are, however, exaggerated by the incorporation of study credits, which have grown sharply in recent years. The Bank of England's last week's numbers, which rule out students' credits, put the sum at 192 billion pounds by the end of November 2016.

"Nevertheless, the Bank's officers have pointed out that they are currently not too concerned about the debt level. "The interest rate is still very low and will stay so for the time being, so there is less concern about debt service than in the past," said Andy Haldane, the bank's head banker, last weekend.

However, others believe that many homes may run into problems this year. "Joanna Elson, Managing Director of the Money Advice Trust, said that the vast majority a borrower will currently be able to deal with this additional debt. "But if the 2017 economic downturn does happen, this could become more challenging - and some homes could run the risk picking up abrupt changes in the country's finances."

TUC said unfunded debt as a percent of household incomes had now risen to 27.4%, its highest level in eight years. "This increase in household debt is a wake-up call to households to struggle to make ends meet on their own," said Frances O'Grady, TUC General Secretary. Excluding students' debt from the numbers makes a significant distinction from the overall amount of unfunded debt, which relates to credit card borrowings and credit lines, as well as the financing of new vehicles.

Those who began their studies in England in 2012 are likely to be leaving the UK with nearly 40,000 in debt, according to a House of Commons Library document released last monthly.

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