Why personal debt in the UK is the worst in Europe
January 9, 2008
The fact that the UK has a problem with debt has not been a big secret for many years. However, as more and more consumers continue to spend more than they can comfortably afford on their credit cards, the UK is now officially the worst in Europe for personal debt.
The figures that have come out recently show that the UK is responsible for a third of the debt within Western Europe. The average person within the UK tends to be at least £3,000 in debt, whereas in the rest of Europe the average person is only just over £1,000 in debt. The main problem is that the debt levels within the UK do not seem to be slowing down at all. Last year the debt rose by just over 10% and if it keeps increasing at the same rate next year then the debt crisis within the UK could really cause serious problems.
The main way in which this debt crisis can be solved is through proper money management. It is up to each consumer to lower their own personal debt if they want to help to bring down the debt levels within the UK. By looking at your finances you will be able to see exactly where you could improve and what you could cut back on.
Credit cards are a major contributor towards debt levels and so if you do own a credit card; it would be a wise idea to evaluate how you use it. Ideally you should never spend money that you do not have. Credit cards can be useful if you need money before your payday, but you should never spend more money than you actually need to.
You could also try to transfer your balance over if you have quite a lot of debt on your credit card. By transferring it onto another card which has a good balance transfer offer, you could easily pay off your debt and find the repayments a lot more manageable at the same time.
Overall the personal debt within the UK has proven to be the worst in Europe. Whilst it shows no sign of letting up, if each consumer took a look at their personal credit card debt levels, it is possible that they could help to bring down the UK’s debt levels; even if it is only a little bit.
