New figures reveal increased levels of average debt for UK consumers

As we arrive at the mid-point of 2023, those New Year’s resolutions we set in January are now but a distant memory, but should we be paying more attention to our financial health?

New data highlights how people in the UK have accumulated £101 billion worth of debt since the start of 2023, as household budgets stretch to battle the rising cost of living, inflation and growing interest rates.

Regionally, those living in Belfast are feeling the pinch the most, totalling on average £5676 worth of debt in the last six months. In contrast, the people of Brighton have been impacted the least, averaging £644 of debt since the start of 2023. The excitement of summer can add extra pressure on stretched household budgets, as over a quarter (25%) of UK adults expect their debt levels to increase due to the summer holidays.

With our finances in a fragile state, one in four men (25%) expect their debt levels to rise due to upcoming special occasions, such as a birthday, with 1 in 5 women (20%) feeling the same pressure.

Although it may be six months away, already 3 out of 10 UK adults (30%) fear that their debt levels are likely to increase due to additional Christmas expenses.

Worryingly, research highlights that over a third (34%) of 16–24-year-olds expect their debt levels to increase over the next six months.

Discussing the research, Kevin Mountford co-founder or Raisin UK, commented: “With the recent news of mortgage increases potentially squeezing families further it’s easy to understand why consumers are worried. With the average UK household now holding £65,513 in debt (up from £60,526 at the end of the pandemic), getting ahead of financial planning and into better financial habits sooner rather than later could ease some of the mounting pressure.

“As interest continues to increase, so does the cost of borrowing. Transferring any credit card balances onto lower or zero-interest deals, consolidating existing debt into a single payment lower interest loan, and even comparing and switching household bills to cheaper deals could all have a helping impact. Similarly, any savings (however small) should be moved to a higher interest rate account to see maximum return for your money – many short-term fixed accounts are now above 5% and can offer up to £400 by winter on the average savings balances.”

Der Beitrag Brits’ debt for 2023 reaches £101 billion erschien zuerst auf Raisin.