More Than 5,000 People a Year ‘Homeless’ As Household Debt Crisis Deepens

Hundreds of people are made homeless every month in the UK because they are unable to meet mortgage and rent payments, according to a new report which exposes the damage of problem debt. The Centre for Social Justice (CSJ) study finds that despite signs of national economic recovery, personal debt in the UK remains close to its all-time high at £1.4 trillion. There is now an average household debt of £54,000 – nearly twice the level of a decade ago.The report, Maxed Out, says poor people are bearing the brunt of a storm that has seen unsecured consumer debt almost triple in the last 20 years, reaching nearly £160 billion today. Worryingly, indebted households in the poorest 10 per cent of the country have average debts more than four times their annual income. Average debt repayments within this group amounted to nearly half their gross monthly income, the report highlights. Download a copy of the report from the CSJ website.