A report has just been published about UK Debt. The typical person in Briton can expect to become free of debt at the age of 69. This is 12 years later than they hope to. The report by the Centre of Economics and Business Research showed the extent of the debt crisis in the UK.
People typically hope to clear their debts by the time they reach 57, but the truth is that they are more likely to still have debt at the age of 65, the age most people would like to consider retiring.
The reality is that they are likely to have hit their 69th birthday before they have paid off all their loans. This research confirms the data obtained by the Office for National Statistics (ONS) data on uk debt.
The UK adult population are now having to wait later in life to become “debt-free” Someone aged between 16 and 24 years old now could be aged 74 by the time they can celebrate becoming debt-free, the report found. Rising property prices lead to bigger mortgage debts.
Throughout the UK there are regional variations, for example a home owner in the North East could become debt free aged 57, whereas households in London will not celebrate their debt-free birthday until around 20 years later - at the age of 77.
The report confirms that householder tend to be over optimistic about the time it takes to repay the debts they have. Consumer research suggests that most people feel they could be debt free by the age of 50. In reality for most people this is very optimistic
The report concluded that most people are in fact aged 64 before non-mortgage debts are cleared.
UK Debt. Is it out of Control?
For the younger age group 18 to 24 year olds, the report paints a dim future. This group are the most optimistic about paying off debt early, have the highest amount of debt per person on average and will not pay off non mortgage uk debt till the age of 66.
When mortgages are taken into account, households containing people aged 35 to 44 years old tend to be the most indebted, the report found, owing £87,800 typically, as the average age of a first time buyer is 31 and most households have mortgages and other financial commitments at this age.
How to help yourself
Whilst it shows a big problem there are ways to improve the situation from a personal perspective. Having a structured financial plan to repay debt and consistently reviewing income and expenditure on an ongoing basis is the key to reducing debt. A review of expenses such as Gas, Electricity, Water and other regular bills can help.
Long term cash flow planning can really help you to focus on the future and how to plan in the short, medium and long term.
Obtain impartial advice from an independent financial planner that will help you focus on what is important not just now, but in the future. An alternative is to contact the Citizens Advice Bureau
If you want to find out more about cash flow planning, please contact us.
Time and time again forecaster try to predict what will happen in the future to Stock Markets. In reality, nobody knows what Markets will do next.
The Wall Street Journal in the US recently
published an article about the performance of Global Stocks and Shares. The
article was called, “ Global
Stocks Post Strongest First Half in Years, Worrying Investors
for stocks and shares investors is whether the strong first six months of 2017 heralds
a choppier second half or the start of a multiyear upswing. The data on global
rallies offers a mixed record.”
In plain English, this means:
“It’s impossible to predict whether markets will go up or down for the latter half of the year. Markets could go up or down or even trade sideways.”
The newspaper article also reported that: “Most of the major stock Market Indexes, 26 in total have risen in value so far in 2017. The last time this happened was in 2009.
Over the month weeks and months, we are looking to improve the personal finance portal (PFP) for our clients. The first stage is to introduce a live chat, audio and video service whilst clients are logged into PFP. This is the first level of improvements we will be making over the coming months. The live chat service is safe and secure.