Debt has reached close to £60,000 per household, the latest statistics have revealed, as Britons increasingly struggle to keep on top of their personal finances.
New figures published by the debt charity Credit Action also revealed that one Briton is declared bankrupt or insolvent every four-and-a-half minutes, while daily interest paid on borrowing stands at close to £210 million.
Britain’s high level personal debt – which stands at almost £1.5 trillion – will likely encourage individuals looking to dispose of financial products such as an endowment policy to discard their investments sooner, rather than later.
When considering how best to repay debt, unwanted endowment policy holders often do not know that selling their policy is a viable alternative to surrendering and can often yield more money than expected.
In fact, aap, the country’s foremost purchaser of endowments, can reassure policy holders it will pay them more for their investment if they are made an offer.
In a recent survey of its customers, aap found that individuals often sold a poorly performing endowment before maturity so they could promptly pay off some of their personal debt, which could include mortgage arrears.
The Credit Action statistics showed that the overall amount of UK debt has eased slightly, but one expert believes this does not necessarily indicate an improvement in the UK’s economic situation.
“The fact that the growth of UK personal debt is slowing could be seen as a positive, but unfortunately rather than suggesting people are paying back more of their debt, it reflects the lack of credit, including mortgages, that’s currently available,” said Chris Eagle, commercial manager at CreditChoices.co.uk.
Statistics published by the Citizens’ Advice Bureau last month revealed that the average amount of debt for each of its clients was now about £17,000.