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Household debt to increase by more than 20,000 in five years

By Helen Gradwell

1 August2021

The average level of household debt (which includes mortgages) in the UK stood at 55,514 in May. The Office for Budget Responsibility, however, has predicted that household debt will increase by over 20,000 in the next five years - it's expected to reach 77,719 in 2017.

Looking at May 2021, the UK's annual interest repayments on personal debts totalled 63.1 billion. That's around 2,399 per household, according to Credit Action.

But what can you do if you're worried about your level of household debt? An expert from Think Money had this advice:

"If you want to stay on top of your mortgage repayments, it can really help to clear your other debts - like overdrafts and credit cards. By paying these off, you can 'free up' funds to put towards your mortgage, or put into an emergency savings fund.

"It's not always easy, however. If you're finding it hard to repay your debts, it might help to look at your budget and see if there are any areas where you're spending more than you should. It might be difficult to cut back on 'luxuries' for a while, but it could help you repay your debts faster. If you want some easy tips that could save you money, click here.

"Sometimes, however, debts are more difficult to repay. If you've tried to tackle your debts on your own, but you're still struggling, it's definitely worth seeking some expert advice."

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Tags: debt, mortgages, Credit Action, debt advice, household debt, budgeting

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