UK debt amongst ‘highest in the world’ says leading professional services firm

In unwelcome news for the UK consumer credit industry, a new report by the global financial and professional services organisation, Price Waterhouse Cooper (PwC), has found that UK household debt is amongst the highest in the world.

Although household borrowing remained relatively constant throughout 2011, the PwC report – Precious Plastic 2012 - found that those in the 25-34 year old age range experienced particular difficulty in paying off debts with 25% having to resort to credit cards to purchase essentials, not luxuries.

 “UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8000 of unsecured debt, said Simon Westcott, Director of PwC’s Financial Services practice.

“Although the UK Government’s austerity drive appears to be hitting home, with households paying off an average of £355 worth of their debt in 2011, three years of austerity by UK consumers has only made a small dent in the total levels of borrowing.

“In addition to this, our credit confidence survey has shown that there is a growing reluctance to borrow in the future and a marked deterioration in confidence about meeting repayments, particularly among 25 to 34 year olds consumers where less than half of those surveyed believing they will be able to repay their debts.”