What's The Average Personal Debt in the UK?

In this video, we explore the current state of personal debt in the UK. We discuss the various forms of personal debt and identify the factors contributing to the rising levels of personal debt in the country.

With data from multiple sources, including the Office of National Statistics and The Commons Library, we offer insights into patterns and changes in UK personal spending habits.

Additionally, we provide tips for managing personal debt, including creating a budget, considering debt consolidation, and seeking help from organizations like StepChange and the National Debtline.

The information provided in this video is for editorial purposes only and not intended as financial advice. Free debt counselling, debt adjusting and providing of credit information services are available from MoneyHelper, an independent service set up to help people manage their money. You can find out more by contacting MoneyHelper. MoneyNerd is not associated with MoneyHelper, we just think they're great.

MoneyNerd does not give specific debt advice and we recommend that you always discuss your personal situation with a qualified adviser that works for a company that is authorised and regulated by the Financial Conduct Authority. With your consent MoneyNerd may pass you on to a trusted debt counselling company or insolvency practitioner. MoneyNerd Limited is an Introducer Appointed Representative of Pacific Financial Solutions Ltd who is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 688034) and is classed as a debt counselling firm. Their in house IPs are Jason Bowen who is authorised to Act in the UK by the Institute of Chartered Accountants of Scotland (ICAS). Licence no. 22150 and Laura Stewart who is authorised to Act as in the UK by the Insolvency Practitioners Association (IPA). Licence no. 23590.

[ep]

I've always hated the idea of being in debt, wasn't even keen on having a mortgage, I did get a mortgage on a run down house for £83, 000 back in 2010, I renovated this house and I overpaid this single handedly and made final payment in spring 2023 - the house is now worth £250, 000.

One bit of luck I had was the ultra low interest rates for the 13 years of the mortgage.

[Funkybassuk]

I just paid off my debts last month. What a relief!

[grandpre]

I can honestly say, I don't know anybody in any real debt. Not unaffordable debt.

Such a big deal gets talked about in general conversations. But when I hear people say they are struggling, they tell me they are flying out to Turkey, Spain etc.... in the next sentence.

Wierd times.

[findAplaceToCallHome]

It’s so alarming that the student loans are not considered a debt. This is a ticking time bomb. The government will at some point privatise these loans and then we’ll end up like the US

[petermccarthy]

Interesting video. You will know more than me, but presumably much of the unsecured debt, which is considerable, gets moved on; often sold to a third party (debt collectors etc). This is an interesting point because there’s division on what this amounts to. To what extent are we bound to pay a third party? The bills of exchange act is open to interpretation. But the general feeling might be that emergency owe a third party absolutely nothing. There isn’t the clarity we would want but contract law, goods and services act, bills of exchange, as well as exposing anything a bit fishy, might help. Keep it going long enough and a debt isn’t enforceable.
Be strong
Peter

[jasonmadelin]

All I can say is a fool and money are soon parted but the bigest type of fool takes on debt for a new car or holidays etc, borrow to invest fine borrow to keep up with next door crazy. Drive an old car and save save save when you have money you can make money.

[dongmingzhu]

The average debt of the UK should be about minus £10K per person