Families See Rise in Unsecured Debt

New statistics from insurance firm Aviva revealed that families with one or more children have experienced a sharp rise in unsecured debt levels. Between January and May 2011, average credit card and overdraft rose from £5,360 to £5,878 per person.

However amongst parents this figure saw a much greater change, as those with one child saw an increase from £4,402 to £5,452 and those with 2 or more children experiencing an increase to £6,200 from £4,404.

The survey also reported an increase in the costs of servicing debt as a percentage of household income, with the figure growing from 8% to 10% between January and May. More positively, the research indicated an increase in household savings. The proportion of families with no savings at all fell from 33% to 28% between January and May.  

Aviva’s head of pensions marketing, Paul Goodwin expressed concerned about the situation: “UK families are worried about the future with almost two-thirds anxious about any increases in the cost of basic necessities over the next six months,” He said. “This research really serves to highlight the precarious balancing act that many face today as they look to meet their financial obligations and provide their families with some type of financial security”