Personal debt has hit the £180 billion mark (not including mortgage costs) and was revealed to be more than the annual budget for the NHS. The research which was carried out for BBC News, analysed personal loans, credit and store cards.
Back in November 2015 the amount of money being borrowed by individuals saw the biggest monthly increase since the financial crisis back in 2008.
At some point in life most people will borrow money. Aside from being a way of building credit scores, borrowing is typically used to bridge gaps when someone is hit by an unforeseen expense. People most frequently seek that financial support for things such as bills, cars, houses, education, and so on.
The debt however, can quickly become a problem as people struggle to repay loans as they are having to maintain separate costs simultaneously. In light of this research, investigators have now warned that this can even occur regardless of how much people earn or where they live.
The study examined where people have requested advice or guidance for debt in Britain. The review, highlighted that Barking, Dagenham, Manchester, Sandwell and Hull were the biggest debt worriers, with the London Borough of Newham topping the list.
After a report from Citizens Advice at the end of 2015, it was widely covered that young adults were facing huge levels of debt after excessive borrowing. Citizens Advice claimed people aged 17 to 24 asked for advice on 102,296 debt issues in the last year, a 21% rise on the previous year. Large student debts, career demands, interest fees and attempts to get on the property ladder were commonly leading to their escalating monetary troubles.
It isn’t only young adults that are struggling with stifling debt. Aviva recently conducted research into family finance which revealed that family debt has risen to an average of £13,520. This again is another figure that is at its highest level in years. There are increased worries that for some individuals, a reliance on money lending options such as credit cards, could become more problematic if interest rates were to rise.
With so much light being shed on these issues, there is now an increased focus on getting people the information and support they need in order to manage their money more efficiently.