The average household in Britain has nearly £8,000 worth of debt from loans, overdrafts and credit cards, despite spending three years trying to pay them down, a study has found.
In its Precious Plastic report, accountancy firm PricewaterhouseCoopers (PwC) said British families paid off around £355 of unsecured debt in 2011 but with £7,900 outstanding on average, they still remain "among the most indebted in the world".
PwC predicts households will continue on the austerity path, reducing their debts by a further £400 this year.
Despite three successive years of net repayments, consumers have hardly scratched the surface and at this rate it will take nearly 20 years to fully pay off the outstanding amount.
PwC financial services director Simon Westcott said: "UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8,000 of unsecured debt...more