Some Startling Statistics on UK Personal Debt – It’s Time to Take Control of Yours!

It all began with the debt crisis of 2008 and for several years the economy went from bad to worse. UK companies were made redundant, often because consumers couldn’t pay their debt. In turn, many people lost their homes and vehicles and with work scarce because of a floundering economy, no one seemed able to keep their head above water financially. However, the tides have shifted, and the economy is growing, even amidst worries over the long-term fears of Brexit, but even a growing economy is not enough to halt the rising personal debt in the UK.

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Data Based on Figures Released by the Money Charity

According to the most recent figures released by the Money Charity, UK personal debt is now tallied at £1.576 trillion and that is up from £1.5 trillion just months before. Imagine personal debt rising by that much in the course of a few months – about 90 days to be exact. That is rather startling news and a key indicator that all is not well on the financial home front!

Average UK Debt by Household

Those very same figures released in March of this year indicated that the average family is approximately £30,455 in debt. The rather startling aspect of this is that this figure is about equal to 114% of the average annual income. Obviously, a family couldn’t give all of their income to debt in the course of a year because they would literally not survive, so what can they do to keep from being forced into bankruptcy?

First a Look at Long-Term Forecasts

Before looking at what you can do to take control of your debt, one more rather disturbing piece of news should be mentioned. That £1.576 trillion of cumulative personal debt now is expected to rise to over £2.296 trillion within the next few years, according to the Office for Budget Responsibility. If you don’t want to be a part of this troubling statistic, now is the time to get a handle on your spending.

Procrastination Can Be Your Ultimate Downfall

As the old saying goes, never put off until tomorrow what you can do today. If you have found that your personal debt is out of control, don’t wait to be taken to bankruptcy court. There are several ways to go about taking control of your debt beyond tearing up all your credit cards. The first item on the list should be how to find ways to chip away at the debt you currently owe.

Have You Considered an IVA?

This is formal way to solve debt and it can help you quickly take control of your finances so that you can keep creditors at bay. An IVA, or Individual Voluntary Arrangement, is agreed between you and your debtors and formalised in court. The terms and conditions must be adhered to and as long as you pay timely the agreed amount, no creditor can hassle you or threaten further action.

It’s always better to chip away at debt rather than thinking that eventually you will be out of this rut. When you are in debt over your head, tomorrow never comes! Get control now by halting unnecessary expenditures and seeking formal solutions to paying off current debt. If you don’t want to be a statistic in 2022, it’s time to take that first step.