The average UK family debt has rocketed by 48% in one year without mortgages being taken into account, according to Aviva.
The insurer said average unsecured debt had risen to an average of 32% of household income in January 2012, reaching £7,944, as families piled on debts rather than clearing them.
This was a 48% rise on the £5,360 figure the firm recorded in January last year, with Aviva also citing a drop in the number of families saving their money despite a 7% average rise in household income levels.
Meanwhile, over 60% of families polled by Aviva said their primary concerns in the next six months was the rising costs of living, while 46% were also worried about the threat of redundancy.
Louise Colley, head of protection sales and marketing at Aviva, said: “While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning that families are struggling to keep up.
“Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts.”
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