Average Household Debt 'Doubled In Last Decade'

A new report from The Centre for Social Justice warns that families are falling into debt and are finding it harder to escape.

It warned that, despite signs the economy is recovering, personal debt is reaching "unsustainable" levels.

The report said borrowings and rising energy bills caused the total household debt to double in the last decade.

It was reported on the Telegraph website that British households now owe an average of £54,000, including mortgages. This is an increase from £29,000 a decade ago, because of this, millions are now at "crisis point".

The study, named Maxed Out, calls for "proactive steps" to prevent these problems.

It warns that debt and borrowing is having a negative impact on lives and can lead to "damaged families" and mental health problems.

The average cost of living is up by 25% in the past five years the report says, with the increase in energy bill prices being particularly concerning.  

The report cites figures from Ofgen, the energy regulator, showing the average debt held by gas and electricity customers rose from around £100 in 2001 to more than £370 in 2011.

Christian Guy, director of the CSJ, said: "Years of increased borrowing, rising living costs and struggling to save has forced many families into a debt trap that is proving very difficult to escape."

From our offices in Preston we can provide a range of legal services tailored to your needs. If you are a landlord with debt recovery problems or a tenant living in a poorly maintained environment we may be able to help.

In the first instance please call 01772 88 2888 or email our team at info@ellencourt.com now.

Ellen Court Partnership

Preston Debt Recovery Solicitors

Tel: 01772 882888