UK household debt on the increase

The Daily Mail reports that household debt is on the rise, with the average being nearly £9k last year, not including mortgage debts. One reason for the growth in borrowing is due to the record low interest rates keeping the costs of borrowing relatively affordable.

As a result of households having more unsecured debts, businesses may find that it becomes an uphill struggle in chasing down unpaid bills and judgments, as debtors prioritise paying those who shout loudest.

Sallyanne Phillips, commercial litigation solicitor at Gordons, says “To try and combat difficulties in getting paid, businesses should focus on the importance of making early enquiries as to a customer’s circumstances and their ability to pay before providing goods/services. This should assist in minimising bad debts arising and stop future growth being undermined by the writing down of bad debts.”

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