Buy now, Pay later! UK Admits Debt Problem

Written by Paul on Thursday 25 October 2007

According to figures released recently by the Bank of England, our personal debt mountain has hit an all-time high of £1,300 billion (£1.3 trillion).

This figure first exceeded the £trillion mark in mid-2004. Since then, we’ve borrowed another astonishing £300 billion in just 33 months. Since 2000, the UKs personal debt level has grown by a massive 110%. It has tripled in the past twelve years, rising from just £439 billion at the end of January 1995 to £1,300 billion earlier this year. This equates to a growth rate of almost 10% a year compounded.

The problem is our after-tax disposable income has risen by just 5% a year over the same period. You don’t have to be a mathematician to work out that this just doesn’t add up.

Buy now, pay later may sound like a great idea, but spending tomorrow’s money today can make you poorer further down the line. If you find yourself opening your bank and credit card statements and wondering where it all went wrong then you should seek advice straight away from a non fee-charging free debt advice company such as Payplan.

You can call Payplan free on 0800 280 2816

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