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£1.45 Trillion of UK Debt
There’s now approximately £1.45 trillion worth of debt in the UK. This huge debt is broken down to unsecured loans, credit cards, overdrafts, and store cards.
Personal debt for the average UK citizen is just under the £5k mark.
If we were to add mortages into the equation it goes up to over £30k – 132% of the typical persons earnings.
These figures are worrying. So much so that managing this debt becomes a neccessity, not only now but in the future as it could get even more out of hand. IVA’s are one of these solutions, given that house prices are falling, people are being made redundant, IVA’s could be a light at the end of the tunnel.
Interest repayments are ridiculous – amounting to a whopping £66.2 billion in the last year alone. Per household that debt works out to £2,650 per year.
There is some good news however, it looks like UK debt is slowing down, or at least starting to. Apparently in May this year debt increases by £1 million every 77 minutes, if we look at last January (2008) debt was increasing by £1 million every 5 minutes.
