Average debts have risen significantly

Wed, 30 May 2012

By Anthony Thwaite

Average debts owed by consumers in the UK have risen dramatically over the last 12 months, a new study has revealed.

According to the Aviva Family Finances Report, arrears have swelled by 58 per cent in the past year, with credit cards, loans and overdrafts accounting for the majority of money outstanding.

Indeed, the average family now owes 39,314, which is markedly more than the £5,878 recorded in March 2011.

The investigation revealed people are required to pay back £2,266 on their plastic, £1,895 on the loans they have taken out and £1,650 on their overdraft facilities.

Despite this escalation in debts, the research also revealed household incomes rose by four per cent in the last year, while savings pots jumped by six per cent year-on-year.

Richard Kelsall, head of savings for Aviva, stated: "Many UK families have experienced tough times in recent years, so it's reassuring to see that people are getting to grips with their finances to weather the storm."

Mr Kelsall added, however, that households continue to face plenty of monetary pressures, from the costs involved when sending a child to university to the finances required for car repairs.
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