£7,944 – the average family debt

money stress

money stressIn order to keep up with high inflation, many of us have been forced to cut back on our spending or borrow money in recent months.

And now new research from Aviva shows that UK families have been forced to borrow £2,500 more on their credit cards and through personal loans to make ends meet over the past year.

The firm's Family Finances report found that, when mortgages are taken out of the equation, families currently have to contend with debts of £7,944 on average. This has risen by 48%, the worrying study indicated.

Families typically owe £2,314 in credit card bills, Aviva said, while overdrafts and loans are also taking their toll.

We've all felt the strain of high living costs in the last year, and the figures show that while family incomes have gone up by 7% on average, this has fallen short of inflation in some cases.

Couples who are planning to have children reported an 11% year-on-year increase in monthly income to £2,433, while those living with a partner who do not plan to have children had a 10% annual rise to £2,220. Both these groups tend to derive their income from a full-time "breadwinner" wage.

The percentage of family cash spent on food has remained constant at around 10%, despite price hikes, suggesting people are shopping around more, the report said.

Louise Colley, head of protection sales and marketing at Aviva, commented: "While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning families are struggling to keep up."

More than 10,000 consumers in the UK were questioned as part of the research.