A recent report by accountants PWC projects that during next year the average level of household debt (excluding mortgages) will exceed £10,000. Low interest rates are keeping repayments manageable for the moment. But if rates rise by a modest 2%, as they could, then the interest on this debt could rise by a further £1,000 per year! Rather worryingly those surveyed by PWC seemed very complacent about this risk.
As a general rule of thumb you should always repay your loans as quickly as you can afford to. But if you are unable to do this then there are still things you can do to alleviate the pressure of your debt and indeed gradually reduce it. We recommend that you confront any debt issue you have, and use our guide to help you take control of it. You can watch our guide or read it here.