In modern society, borrowing money from banks and other financial institutions has become the norm. Credit cards, loans and mortgages are all commonplace, but it seems in the UK we’re turning more and more to these sources of finance.
Money Expert recently reported on data from The Money Charity, which showed that personal debt levels in the UK increased in 2017.
In total, the value of outstanding personal debt has hit £1.576 trillion, which means the average person now owes £30,455 (including mortgages). When you add in the interest payments, this is a substantial sum to repay.
What’s more, the news provider noted that the Office for Budget Responsibility is expecting this figure to increase significantly in the coming years, and it is predicted to reach £2.296 trillion by the first quarter of 2022.
Credit card debt in particular is expected to increase in the coming months and years. This could all lead to difficulties for some people when it comes to repayments – and for businesses that can cause additional problems.
With personal debt on the increase, there is therefore likely to be a greater demand for debt recovery investigators in Surrey and elsewhere in the UK to ensure that people repay what they owe.
But it isn’t only personal debt that could cause issues in the future. Trade credit insurer Euler Hermes warned earlier this month that insolvencies among UK businesses are expected to increase as well.
The organisation is forecasting an eight per cent rise in business insolvencies in the country during 2018, citing the knock-on effect of Brexit as one of the main reasons for the difficulties British firms are facing.