Personal debt rises again

Up up and away

There seems to be no end in sight for the relentless surge of national debt. We, as a nation, owe £1.345 Trillion (£1,345 Billion if you like it that way). No matter what, it is a huge amount of amount that we owe collectively.

The trouble with statistics is they show a general picture. Most reports will focus on the average debt, household debt that is, being £8,841. But not many of us are in an average household. Everyone is different, different incomes, different expenses, lifestyles and debts.

So a household of a young couple earning a total of £50,000 per year with that debt is probably unconcerned.

Next door, a household of 2 adults and 2 children with only one adult in work earning £12,000 - well that's a different story. That's the £8,841 turning into £9,000 next month, or even £9,500.

That's why it's dangerous to look at these stats and think - "that's ok, we're average, everyones in the same boat". Actually, it's about affordability. If you find yourself not being able to meet a payment, or have to use your visa for a weekly shop then these are potential danger signs. Take heed, take action

Here's a thought: If everyone in the country went 12 months living on just bare basics and paid every spare penny into paying off debts, would and how fast would our national debt come down? Would Tescos need to issue a profit warning? How much damage to the economy would it cause? I'll let the financial gurus play with their calculators on that one!