New reports from PricewaterhouseCooper (PWC) brings both good and bad news.
The good is that levels of unsecured borrowing fell for the third successive year by over £365 per household in 2011, as it seems consumers in the UK are finally showing commitment to paying off their debts.
The bad, however, there are worrying signs about their ability to continue to pay off their debts, paticularly in the 25-34 year old age group, where 25% admitted needing to use credit to fund essential purchases last year.
Simon Westcott, director in PwC’s Financial Services practice commented:
“UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8,000 of unsecured debt. Although the UK Government’s austerity drive appears to be hitting home, with households paying off an average of £355 worth of their debt in 2011, three years of austerity by UK consumers has only made a small dent in the total levels of borrowing.
“In addition to this, our credit confidence survey has shown that there is a growing reluctance to borrow in the future and a marked deterioration in confidence about meeting repayments, particularly among 18 to 24 year olds consumers where less than half of those surveyed believing they will be able to repay their debts”
If you are struggling repaying your unsecured debts, then call us now on 0800 988 7701 for no obligation debt advice from trained debt advisors. Alternatively, complete our contact form and we'll get back to you as soon as possible.
