UK household debt hits an all time high as Brits 'fall back in love' with borrowing
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According to the firm's latest report "Precious Plastic 2015," the average UK household will rack up £10,000 ($14,924) in unsecured debt by the end of 2016 as Britons try to take advantage of record low interest rates that have stayed at 0.5% since 2009.
The data showed that borrowing on credit cards was responsible for 22% of the rise in the unsecured debt while loans, overdrafts and student loans accounted for the rest.
Last year, unsecured debt returned to an all-time high, in cash terms, of nearly £9,000 per household.
But PwC warned that "consumers could begin to feel squeezed once again" if interest rates were to rise. It also warned that "there is a danger of complacency" despite most Britons being currently "in control" of their borrowing.
It said if interest rates were to rise by 2%, Britons would have to find an extra £1,000 to pay just the interest costs alone.
The total household debt to income ratio is projected to reach around 172% by 2020.
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