The typical UK home has around £2,000 of credit card debt, research shows, but there is one action consumers can take to halve it. The Money Charity estimates each UK household has an average credit card debt of around £2,582.
Top 10 Debt Statistics UK. The average debt in the UK is over £1.5 billion. Less than 10% of households in the UK have debt problems. Unsecured debt from personal loans was over £200 billion.
The average credit card holder in the U.S. had $5,668 in credit card debt in Q2 2021 — that's 1% higher than Q1 2021's $5,611 average. From the first Q1 2020 to Q2 2021, the average credit card debt per cardholder decreased by $766 or 12%. The average cardholder had $6,434 in Q1 2020.
This means scheduling and paying off your debts from smallest to largest. If you have debts that are between 43% and 50% of your annual income, then this is considered as too much. In these instances, it's recommended that you consult a credit counselling agency such as StepChange, National Debtline or Citizens Advice.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.
UK Personal Debt
Per adult this was £33,169, around 108.6% of average earnings. This is up from the revised £33,080 a month earlier. Based on November 2021 numbers, the UK's total interest payments on personal debt over a 12-month period would have been £44,454 million, an average of £122 million per day.
The average millennial has over $4,000 in credit card debt—other generations have more.
But ideally you should never spend more than 10% of your take-home pay towards credit card debt. ... So, take a look at your budget and bank statements and calculate how much money you're spending monthly to pay down debt. If that amount is greater than 10%, you might have a problem.
Most lenders say a DTI of 36% is acceptable, but they want to loan you money so they're willing to cut some slack. Many financial advisors say a DTI higher than 35% means you are carrying too much debt.
The average savings per person in the UK stood at £9,633 in 2020. According to Raisin's survey of more than 2,000 Brits, the total average amount of savings in the UK was £35,361.09; however, the average, i.e. excluding the biggest and lowest savers, amounted to slightly over 9 thousand pounds per individual.
While total borrowing between March 2020 and July 2021 was £413bn, the Bank of England's total purchase of government debt was £412bn, or 99.5%.
High-interest credit card debt can devastate even the most thought-out financial plan. On average, Americans carry $5,315 in credit card debt, but if your balance is much higher—say, $20,000 or beyond—you may be feeling hopeless. Paying off a high credit card balance can be a daunting task, but it's possible.
This includes mortgage repayment, property taxes, and insurances. Your total debt repayments should also not be higher than 36% of your gross income. When it comes to car loans, the debt to income ratio shouldn't be more than 10% of gross income.
Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.
Even though household net worth is on the rise in America (at $141 trillion in the summer of 2021)—so is debt. The total personal debt in the U.S. is at an all-time high of $14.96 trillion. The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt.
Bottom line, if your credit card debt is only a little over $2,000, don't worry about it. I'm sure you'll get sick somewhere along the line and owing $2,000 will seem quaint.
A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.
According to the new "State of Credit 2021" report from Experian, one of the three major credit reporting bureaus, Gen Xers have the highest credit card debt and highest levels of mortgage and non-mortgage debt of any generation, on average.
Likewise, millennial consumers (ages 25 to 40) have an average of $27,251 in non-mortgage debt, presumably across credit cards, auto loans, personal loans and student loans.
Experian is the largest CRA in the UK. Their scores range from 0-999. A credit score of 721-880 is considered fair. A score of 881-960 is considered good.
35% or less: Looking Good - Relative to your income, your debt is at a manageable level. You most likely have money left over for saving or spending after you've paid your bills. Lenders generally view a lower DTI as favorable. 36% to 49%: Opportunity to improve.
Yes, it is absolutely possible to buy a house with credit card debt. And by lowering your debt-to-income ratio before you apply for a loan, you may qualify for a better interest rate, too.
You may have heard carrying a balance is beneficial to your credit score, so wouldn't it be better to pay off your debt slowly? The answer in almost all cases is no. Paying off credit card debt as quickly as possible will save you money in interest but also help keep your credit in good shape.