As most households are only too well aware, the cost of living in the UK has soared over the past eighteen months, with essential costs such as petrol, food, and energy usage going through the roof whilst wages remain frozen for a huge number of workers. This has resulted in many households facing a severe struggle to make ends meet, with many having to take on more debt in order to cope with the rising cost of living.

In fact, according to recent reports Brits have taken on the highest levels of debt since the recession in the UK hit its peak in May of 2009, with many now having no other choice but to take on more debt in order to keep up with increases in the cost of living. Households are now said to have around £208.6 billion in outstanding debts on credit cards, loans, overdrafts, etc. which equates to around £9070 of debt for every household in the country.

Household debt, excluding mortgage debt, is said to have increased by around £5 billion in the past year alone, which the Bank of England said is the biggest annual increase since the recession. Brits have increased their debts by £629 million in the past month alone, and economists have said that people are now having to increase their debts simply to find their day to day living costs.

One economist said: “The rise in unsecured consumer credit suggests increased ‘stressed borrowing’ is occurring, with more people having to borrow to help finance their spending. This is a consequence of the extended squeeze on their purchasing power coming from elevated inflation, low wage growth and tighter fiscal policy. In addition, job losses are rising.”