Borrowing more and less savings!!. The Centre for Social Justice recently released a report called Maxed Out reveals a picture of a struggling British. Low income and low savings are affecting vulnerable groups like unemployed, aged people, single parents and people with low disposable income. These people are forced to spend the majority of their income for the basic needs.
According the latest reports in 2013 the amount of national debt which Britain hold is £1.43 trillion and this is very much equal to the nation’s whole economic output indication towards life of people are going …. The growing debt is causing disputes in the family and thus it is affecting the society also.
According to this report more than 7 million people are using various credit methods like payday loans, home credits and pawnbrokers. Surprisingly 1.4 million people do not have a bank account for the transaction and they are not taking part in the mainstream financial transaction! This results in poor families giving more surcharges on goods and services on a daily basis and the cost has been estimated as £1,280 per year.
The financially backward community is buying from private lenders and they will come around 310000. The default in repayment is treated harshly by this criminal gang even though it is an offense in Britain. Each year around 130,000 people are declared insolvent, in 2012, 1.7 million were registered for debt advice. Almost all in the UK has been found in one or other kind of debt.
The borrowing also has increased since 1993 by £207 billion. As a result the outstanding unsecured debt has increased from £52 billion to £158 billion since 1993. Here are some other startling accounts
• More than 8 million household do not have any savings!
• More than 5000 people go homeless due to the rent and mortgages
• Outstanding debt on credit cards has increased three times than in 1998 and in 2012 it is £55.6 billion
• 600,000 pay day loan were taken since the buyers did not have an access to credit
• Around 7 million people use high-cost credit
• One in twelve families takes credit from unauthorized money lenders
• Number of illegal money lenders has been doubled from 2008 to 2012
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