An average household in the United Kingdom will owe some $15,000 in personal loans, student borrowings and credit card debts by the end of 2016, which is $1,500 more than in 2014, suggests a report by PricewaterhouseCoopers (PwC) published Monday.
“The average UK household is set to owe close to £10,000 [$15,000] in unsecured debt by the end of 2016, more than ever before in cash terms,” the report titled “Precious Plastic: How Britons Fell Back in Love With Borrowing” said.
According to the study published on the PwC website, the year 2014 has set another record as the total outstanding unsecured borrowing in the United Kingdom increased by nearly $30 billion or 9 percent,” its fastest rate of growth in at least a decade” reaching $358 billion or some $13,500 per household.
“As the total household debt to income ratio heads towards 172% [forecast for 2020] … and interest rates increase, consumers could begin to feel squeezed once again. This could undermine growth for lenders and feed through to resurgence in bad debt,” Simon Westcott, a director in PwC’s financial services practice said as quoted on the company’s website.
Despite these worrying figures, the Britons, according to the study, feel confident about their personal finances. According to a joint PwC/YouGov poll, only 18 percent of the country’s population are worried about how they will manage to repay their debts.