Over half of British households in debt, ONS says

POSTED: 28th January 2013
IN: Personal News

Figures from the Office for National Statistics (ONS) have demonstrated the level of debt facing a number of households across Great Britain.

undefinedAccording to a report published today (January 28th), 51 per cent of households were in debt for the period between 2008-10, compared to 49.9 per cent during 2006-08.

As the findings suggest, private households had total financial liabilities worth an estimated £94.7 billion, which includes credit and store card debt, as well as overdrafts and fixed-term loans.

The average amount of household debt rose from £2,800 in 2008 to £3,200 in 2010, potentially reflecting the impact of tougher economic conditions on people's wallets.

As the ONS revealed, there was a slight rise in the number of Britons that admitted their financial liabilities were a burden, increasing by 1.9 percentage points to 49.4 per cent.

One of the best ways households can stave off the threat of debt is to begin saving so they have enough provision in place to cover the cost of unexpected expenses, such as energy prices hikes and higher fuel costs, for example.

An individual savings account (ISA) is a tax-efficient solution that can help Britons' to build up a substantial pot over a time period that best suits their objectives.

There are a range of options from Aldermore, which won the prize for ISA provider of the Year at the Consumer MoneyFacts Awards 2013 last week as voted soley by consumers.

Savers can, for instance, opt for a fixed rate cash ISA which allows them to easily transfer their cash ISAs from another provider to take advantage of a flexible account.

An account can be opened with a deposit of just £1,000 and is easy to manage though the web, by post or over the phone so savers can choose from their preferred method of staying in touch with their finances.

The content published on this website is intended to provide information only. The reader should seek advice from experts on the subject matter and independently verify the accuracy and relevance of any information provided here before relying upon it or using it for any reason. You can view our terms and conditions here.

Want to read more?

  • Personal
  • Personal Savings
  • Article