The average family credit card/loan/overdraft debt has increased from £5,360 in January 2011 to £5,878 in May, according to research from the latest Aviva Family Finances Report.
The report said that one of the main drivers behind this trend appears to be families with children.
Families with two or more children saw their average unsecured debt increase from £5,248 in January to £6,200 in May and families with one child saw theirs increase from £4,404 to £5,452.
The cost of servicing debt as a percentage of household income has also grown from 8% at the start of the year to 10% in May. Aviva suggests this may indicate a desire to pay off unsecured debt but the figures seem to indicate that it may simply be servicing increasingly expensive borrowing.
60% of family (from 54% in January) are worried about a significant increase in the cost of basic necessities and 39% (up from 37%) are worried about unexpected expenses and 20% (17% – Jan 2011) are concerned about rising mortgage rates.
The report also found that the typical family now has £1,163 in savings and investments (excluding pensions and property) compared to £849 in January 2011.
Paul Goodwin, head of pensions marketing, Aviva, said: “””While it is great news that families are saving more
