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Record Debt Levels

By 7th January 2019Financial Help, News

Record Debt Levels

UK households now have an average of £15,385 of unsecured debts!

This shocking figure comes from a recent TUC survey, the trade union body suggests this rise is due to a combination of austerity and wage stagnation in 2018. This figure is likely to not be entirely representative however, as the TUC included student loans in these figures, and this is a different kind of debt in that you only repay it when you can afford it, and it has no effect on your credit rating or ability to obtain further credit. The Bank of England places the average debt at around half the TUC’s amount.

The research also found out that on average, workers are expected to start the year with £252 debt left over from the festive period, with the majority of people unable to repay even this debt until May!

Know Your Balance

The first step to gaining control over your finances is knowing exactly how much money you have in your account at all times.

Budget

Write down all the money you bring in and take away essentials such as rent/mortgage, utility bills and food. If you have money left over, then you can plan what else you can spend. If you have nothing left over, look at ways you could cut costs.

Pay Off More Than The Minimum

If you are repaying a credit card, try to repay more than the minimum amount.

Highest Interest First

If you have multiple cards, try and repay the ones with the highest interest rate first.

Get Advice

If you’re struggling month after month, and see no sign of light at the end of the tunnel, contact Debt Assist today.

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