Household Debt To Increase By £159 Million Per Day
Published: 31 August 2010 By MoneyHighStreet Staff 1 Comment
Household debt is predicted to rise by £159m per day by the end of 1015, according to the Office for Budget Responsibility (OBR).
In its latest report the OBR is predicting a continual increase in household debt with total debt amounting to £1,823billion by the end of 2015.
This means that each household in the UK will be in debt to the tune of £72,342, on average, by the end of 2015.
Illustrating the inexorable rise in debt levels in the UK, the OBR states that total UK personal debt stood at £1,456 billion at the end of July this year, so the total debt mountain is predicted to rise by around £100bn each year until 2015..
Individuals owe more than what the whole country produces in a year.
Banks are writing off high levels of debt, the report shows, with a total of £10.9bn of loans to individuals being written off during the last twelve months.
In the second quarter of the year, the banks wrote off £2.14bn of credit card debt (£3.47bn in total debt write offs). This amounts to £38.06m of bad debts being written off by banks.
Debts can have a profound effect on people which overcome them in all areas of life. Getting this under control is essential and talking about the problems and bringing them under control through debt management for instance will help in all aspects of life.