General Article Family incomes and savings rise but household debt levels reach an all time high

Topic Selected: Families and Parenting
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  • Average debts peak at almost £13,000 – highest recorded by report series.
  • But family incomes increase by more than £1,200 a year.
  • More families get into a regular savings habit, reaching a record high of £96 a month.

UK families are experiencing a mixed bag of financial fortunes, the latest Aviva Family Finances Report reveals today. The report, which tracks the financial circumstances of different UK family types, shows that while incomes and savings habits are sneaking upwards, so are typical debts.

Typical family debts stack up to record levels

Despite their growing incomes and a greater commitment to saving every month, UK families are regularly turning to unsecured borrowing. Typical household debt has increased by 38% since May 2012 (£9,314) and now stands at £12,834, the highest since this report series began in January 2011.

The biggest debts have actually been racked up through loans from friends and family, at an average of £2,011 per household, while credit card...

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