It will take the average Briton until they are 69 to be free of all debts, according to a new report.
UK house prices are now so high that 18-year-olds who become homeowners may not become debt-free until 74. But this isn’t just about mortgages: the UK economy is built on private debt, with people forced to take on mountains of debt over their lifetime – from student debt to credit card bills.
This is a growing problem. Average personal debt has grown by a fifth since the financial crisis: not including mortgages it’s now £9,000 per household, with 1 in 10 indebted household’s consumer debts exceeding 60% of their income. And things are set to get even worse.
The personal consequences are obvious – a quarter of Britons are afraid of what their future holds – but it also creates wider problems for the economy. Recent GDP growth has been driven by unsustainable, debt-led consumer spending.
But it’s also a solvable problem. By pushing investment away from speculative activities and back into the real economy, we can break this reliance on private debt. To do so we need good, secure jobs that pay decent wages – currently way out of step with house prices – and a solid safety net, not one built on debt, for those families who do get into trouble.
https://youtube.com/watch?v=43SIu39poaw%26rel%3D0
— source neweconomics.org