UK debt exceeds £1 trillion – Ministers predict possibility of soaring debt burden
The national debt level of Britain has exceeded the £1 trillion mark and is predicted to rise at a rate of £7,000 per second a day. The £1 trillion of debt owed by the UK government is equivalent to £40,000 pounds for every household in the UK and is most likely to take decades to pay off. In order to service its debt every year, the UK government requires paying £43 billion in interest alone. This staggeringly high amount almost equates to £120 million a day, an amount that is even more than what the UK government spends on the defence of the country. The layman will have to be running to debt relief companies like the debt settlement and IVA to reduce their debt burden and breathe a sigh of relief. The government foresees that the debt level may hit £1,045 by the end of April, 2011.
The families in the UK will be hard hit by the terrible debt crisis that is taking a toll on the UK economy and within the next four years every average British household will dive into the red as the austerity measure bites in. This, being said by the ministers of the UK government, has spread a terror among the middle-class UK families who are struggling with their financial pressures and the clauses of the British budget. The Office for Budget Responsibility has even raised the prediction of the entire household debt to cross £305 billion pounds by the end of 2015. They believe that the families and the individuals will respond to such dire financial straits by borrowing money more than they have ever done.
The UK economists are of the opinion that George Osborne’s drive the cut off the public deficit and his forecasts on the UK economic growth are all based on the assumptions that debt will redirect from the government to the private households. The Labour accused the government of thrusting agony on to hard-pressed families that are already going through strained financial circumstances. According to last year’s budget (2010), Osborne had forecast that household debt (that includes credit card and home loan debt) would be £1,825 billion. However, with the 2011 British budget, the figure has leaped to £2162 billion.
Some shocking UK debt statistics in January, 2011
Those who are worried about their surging debt problems in the UK are seeking help of the debt relief companies like debt consolidation, debt settlement and IVA. Have a look at the shocking debt statistics in the UK during the month of January, 2011 that may push you towards taking some serious steps towards your debt.
Around 375 people in the UK will be declared bankrupt or insolvent every day. This is almost equates to 1 person going bankrupt every 53 seconds on a particular working day.
- During Quarter 3, 2010, 1816 Country Court Judgments (CCJs) was issued every day and the average judgment amount involved in very case was £3312 on an average.
- Citizen Advice Bureau has reportedly dealt with 9400 debt problems every working day in England and Wales.
- The average person in the UK will save £2.74 a day.
- Almost 1000 people are seeking the help of some form of debt rescheduling every working day.
- 450 people, on an average, became unemployed everyday for more than 12 months in the year 2010.
The average debt owed by every UK adult amounts to £30,000, including mortgages. Britain’s interest repayments on their personal debt were £65.1 billion in the last 12 months. The average interest rate paid by each household is £2582 every year.
As per George Osborne, there have been plenty of talks about rebalancing the UK economy to get a grip on the finances and also in the economy. Though he wants to redirect the economy from a debt-fuelled government, yet the austerity program will force the households to take resort to more debt in order to make ends meet. He has reportedly said that the growth in the economy would only come when the unemployment level will drop down and the people in the UK live within their means.