After a period of flat growth, debt has begun to rise again in recent years. UK households are racking up debt at the fastest pace since before the financial crash , with the average household now spending on average £ 30,000 , according to a new report by the Guardian Charity , and this figure is predicted to rise . Britain 's household debt hit a record high of £ 1.5tn at the end of September , a YoY rise of £ 52bn , the report showed . Private debt is now 82 % of GDP and 113 % of average earnings . Last week , the Bank of England said it predicted that debt would reach 2.7 % next week , which could ignite a rise in interest rates , putting pressure on credit cards , loans and mortgages .
UK households are racking up debt at the fastest pace since before the financial crash , with the average household now spending on average £ 30,000 , according to a new report by the Guardian Charity , and this figure is predicted to rise . Britain 's household debt hit a record high of £ 1.5tn at the end of September , a YoY rise of £ 52bn , the report showed . Private debt is now 82 % of GDP and 113 % of average earnings . Last week , the Bank of England said it predicted that debt would reach 2.7 % next week , which could ignite a rise in interest rates , putting pressure on credit cards , loans and mortgages .