UK households are over-indebted
A total of 8.8 UK billion households are said to be ‘over-indebted’ compared to a total population of 64.1 million in mid-2013 based on Office for National Statistics figures.
Households are taking on increased levels of debt, as total household debt reached £1.47 trillion in 2014 after rising by £34bn in less than three years.
Unsecured debt, such as payday loans, overdrafts or credit cards, made up £170bn of the debt after increasing by £10bn in four years.
Christian Guy, director of the Centre for Social Justice, said: “For more than a decade the CSJ has documented how problem debt is a cause of poverty, as well as a consequence. It damages families, affects mental health and makes it extremely difficult for people to get back on their feet.”