Skip to main content Accessibility Statement
Man with empty wallet

Will you be in £10,000 of debt next year?

According to a PwC survey out today, the average UK household is set to owe close to £10,000 in unsecured debt by the end of 2016. In cash terms, this is more than ever before.

The report suggests while most people in the UK are currently in control of their borrowing and feel confident they will remain so, there is a danger of complacency. PwC indicate that a 2% increase in interest would see households needing to find an extra £1,000 a year just to cover costs.

If you want to keep your household spend healthy, there are places you can go for help.

Being clever about repaying debts

If you’re worried about money, have a think about how to prioritise any debts.  Priority debts aren’t necessarily the largest or most expensive. They are the ones that could mean you lose your home; be made bankrupt; have your heating or lighting cut off; or receive a court summons.

If you are really struggling, you don’t have to suffer in silence. There are lots of debt organisations that are free, confidential and independent.

 

Need to borrow money? This is what you need to know

If you definitely want to borrow some money and you are sure you can repay it, there are a number of important factors to consider.

You should always think about how much you can afford to repay.

You should also make sure you choose the right type of credit or loan for your situation. Otherwise you could find yourself paying more than you need to. Make sure you shop around and compare deals, looking at:

  • The interest rate (APR)
  • The cost per week or month
  • How much you will repay in total, and
  • Any penalties for missed or late payments

Not all credit options are good or safe. If you have a poor credit rating then you may be tempted to use a doorstep lender or a payday loan company. However, these are expensive and should be avoided for anything more than a few days.

 

What do you think?

We really want you to share your views, but please remember to be nice ☺
All fields are required. Check out our full commenting guidelines

By clicking on 'Post Comment', you're agreeing to our Commenting Policy

  • John Rigby / 20 April 2015

    Due to water leakage our bedding and mattress needed quick replacement. I ordered online spending £2700 on credit card. Insurers are often slow to pay out so I opened a new credit card and did a balance transfer of £3k costing £45, I now have 28 months interest free credit and when insurers pay up I can invest the cash and earn two years interest.

  • james olufemi / 26 March 2015

    before i con brow money up to £10,000 the first thing we should look at is the business we are investing on, and the must import things is how much can we realize under one month in this business, and how many month will it take us to meet up to demand, another things is the area that will sweepable business and how much interesting will the consumer will have on this product, this are the major factor we should look upon.