Debt repayments ‘now take up 10% of family income’

Debt repayments now account for ten per cent of a UK family’s income, it has been revealed.

According to Aviva, this figure has risen from just eight per cent in January of this year, which may well indicate that people are struggling to pay off increasingly expensive arrears.

The figures gleaned from the organisation’s latest Family Finances Report found the unsecured debt amongst families with children has skyrocketed; with the average household with children seeing what they owe grow from £5,878 at the beginning of 2011 to £5,878 this month.

This sum is larger for families with two or more children, who have witnessed an increase in debt from £5,248 in January to £6,200 in May 2011.

In addition, the research also found that the majority (84 per cent) of households harbour concerns about their financial security in the next six months.

Head of pensions marketing at Aviva Paul Goodwin stated that the findings serve to highlight the difficulty people have with juggling their financial responsibilities when it comes to providing for their family and children.

“The fact that many have higher unsecured debts and have seen an almost blanket increase in day-to-day living costs is deeply concerning. UK families are worried about the future with almost two-thirds anxious about any increases in the cost of basic necessities over the next six months,” he remarked.

This follows research conducted by Scottish Widows, revealing 33 per cent of UK households are reliant on the income of one breadwinner, which could mean they face problems in the future if something should happen to this provider.

Posted by Joe White