Although the recession is over, it’s clear to see that individuals (as well as businesses) across the UK are finding it challenging to keep their heads above the water, financially speaking. As the years go by, it seems as though there are more and more companies touting financial products that are aimed primarily at getting us further and further into debt, and this is having a real impact on how we treat money.
With this being the case, we thought that we would use some recent statistics to shed some light on the debt situation in the UK. If you feel like you are the only one of your friends who is struggling to remain financially stable, in all probability, you’re not. So have a look at some of this information, and learn that we’re all in this together. Once you know that, you’ll be better equipped to face the problem of debt and get out of the red and into the black.
The Economy Is Up, But Are You?
According to Office of National Statistics, the beginning of the year saw a significant increase in the prosperity of the UK. To take one basic statistic, the report has found that the economy of the whole of the UK has grown by 0.8% in the first quarter of the year alone. Although this doesn’t sound significant, when you’re talking in billions, 0.8% really adds up.
Despite this, although news like this saw the UK’s economic performance and management of debt earn it brownie points at the global level, the figure didn’t really illustrate how the vast majority of that wealth was being generated in the UK was being made by those at the top of the economic spectrum. This has meant that normal, hard-working people have been left to find their own way, and their stories haven’t been incorporated into the greater picture. Therefore, although the UK economy is said to be on the up, it might not be the case that you are.
Personal Debt Across the UK
All across the UK, money is tight, and this means many people are sinking themselves further and further into debt in order to make ends meet. You might predict that only people at the bottom end of the economic spectrum are feeling the economic pinch, but you’ll be surprised to learn that under the interpretation of this article by Different Money, Bath is the city where debt is highest (proportionally) in the UK.
According to the report, the average amount of debt per person under the BA19 postcode is £2,311, the highest in the UK. This might come as a surprise when you take into consideration how affluent the area is, but it just goes to show that personal debt is a universal issue.
Dealing with the Debt
We’ve established that you’re not alone if you have personal debt, but naturally, this doesn’t simply mean that you should ignore it. Taking steps to deal with debt is a good way to get back your financial stability. So whether this means consolidating your debt, budgeting better or taking on any extra work that’s available to you to help you make ends meet, dealing with your debt isn’t something you should leave until the last minute.
If you want to get yourself into the black, it’s going to take some careful financial planning and some disciplined work to ensure that you really meet your financial goals. With the economy only benefitting those at the top of the economic spectrum, you’ll need to work hard to get out of debt, but at least you’re not the only one struggling. Everybody is in it together.