Average family debt reaches new high

The average family in Britain now has unsecured debts of more than £11,000, according to the latest Family Finances Report from insurance company Aviva.

They are spending on average almost £4000 more on household expenses than a year ago – and are using credit cards (39% of families), overdrafts (26%) and personal loans (22%) to help pay the bills.

Debt Advice Foundation’s chief executive David Rodger commented: “While the report shows that some families are managing their budgets and are even able to increase their savings, the high (and rising) level of unsecured debt is very worrying.  There is increasing pressure to borrow, via social media as well as traditional advertising, and our experience is that many people who simply cannot afford the repayments are being encouraged to take on expensive loans. 

“If families are struggling with their day to day living costs, they should seek free advice and support on managing their existing commitments before taking on yet more debt.”

For more on this story, go to:

http://www.aviva.co.uk/media-centre/story/17082/household-costs-rise-by-4000-in-a-year-for-uk-fami/