Debt levels rise for UK households

25/08/2009

UK household income and savings continued to fall in August as debt levels rose among young people, according to new research.

Some 30 per cent of those questioned for the Markit/YouGov Household Finance Index said their household finances worsened this month, while just six per cent reported an improvement.

The rate of decline in household finances was sharpest in Northern Ireland and London, although conditions worsened across all 12 UK regions.

Overall, the index slipped to 38.2 in August from 38.5 in July. A score of under 50 indicates finances are deteriorating.

Despite this, households were positive in their financial outlook, with the index measuring expectations for 12 months' time hitting its highest level since the survey began in February.

This confidence combined with falling incomes and pressure on savings fuelled rising debt levels in August, particularly among 18 to 24-year-olds. Demand for unsecured loans also rose at the fastest pace since the index began.

Markit was founded in 2001. Together with polling company YouGov, it compiles monthly responses from over 2,000 people for the Household Finance Index.

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

Regional Debt Advice; Debt Help London, Debt Help Northern Ireland, Debt Advice Northern Ireland,

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