Debt Statistics You Need to Know in the UK
Ever wonder how much debt the average Brit actually carries? The numbers might surprise you, and they can help you decide whether you’re on track or need a change. Below you’ll find the latest figures, why they matter, and a few simple moves you can make today.
Current Debt Landscape
According to the latest Office for National Statistics release, total household debt in the UK hit £2.4 trillion last year. That’s roughly £38,000 for every household, and it’s been rising for six straight years. The biggest chunk comes from mortgages – about 70 % of the total – followed by credit‑card balances, personal loans, and student loans.
Credit‑card debt alone sits at roughly £120 billion, with the average balance per user at £1,200. If you’re juggling a few cards, you’re probably close to that average. Student loan debt has also climbed, now standing at over £120 billion across the country. The average borrower owes around £30,000, but many younger people are still early in their repayment journey.
One trend worth noting is debt consolidation. Roughly 9 % of households have taken out a consolidation product in the past year, hoping to lower interest costs. While it can shave a few percent off your rate, the overall impact on the national debt totals is still modest.
How the Numbers Affect Your Wallet
Understanding these stats helps you spot red flags in your own finances. If your credit‑card balance is above the £1,200 average, you’re likely paying more interest than most. A quick check of your interest rate versus the market average (around 19 % APR for standard cards) can tell you if a switch makes sense.
Mortgage debt is a long‑term commitment. Even a 0.5 % drop in your rate can save you thousands over the loan’s life. If you’ve built up equity, a remortgage or equity‑release product might be worth a look – just compare the added fees against potential savings.Student loan borrowers should keep an eye on the repayment threshold, which currently sits at £27,000 of annual income. If you earn less, your payments pause, but interest still accrues. Some people use a voluntary repayment plan to chip away at the balance faster and reduce total interest.
When considering debt consolidation, ask yourself three things: Do you get a lower overall rate? Are there hidden fees? And will the new plan extend your repayment term dramatically? A good consolidation plan should lower monthly payments without stretching the debt out for many extra years.
Finally, keep an eye on the broader trend: UK household debt is climbing faster than income growth. That means staying on top of your own numbers is more important than ever. Use budgeting tools, set a realistic repayment goal, and review your statements each month.
Bottom line? The big picture shows debt is a growing part of everyday life, but the details give you power. By comparing your balances to the averages, spotting high‑interest traps, and weighing consolidation options carefully, you can keep your finances on a healthier track.
