Taking an interest in debt
As interest rises, it leaves income behind and householders can expect to gain £100 billion worth of debt simply from interest charges.
Figures are estimated to top the £100 billion mark, which will be the highest figure ever recorded for interest payments. Families are currently losing £1 in every £8 in interest alone for the use of goods and services.
Mortgage payers will contribute to around £72 billion pounds in interest charges and £28 billion will be soaked up in interest from loans, overdrafts and credit card debt.
There are around 25 million families in the UK, which equates to an estimated £4,000 paid out per household, in interest related debt.
The debt mountain in England is the highest in the developed world and these figures explain why so many families are declaring bankruptcy or requiring the assistance of an IVA. The age bracket of those experiencing the highest levels of debt is between the ages of 30 and 45.
However, people continue to live the ‘high life’ on credit whilst becoming a slave to their wages which, in most cases, is swallowed up in debt before the money even reaches their bank account. If things get too much, there is always another credit agreement begging to be signed which pushes the financial constraints of an individual to the limits.
The figures above should cause people to sit up, take notice and seek debt advice so as they can work to a budget which will allow them to stay afloat, when the rest of the nation is sinking into debt
