£15,000 Is the Magic Number When it Comes to Debt Concern in the UK, New Report Shows

Those in the United Kingdom are no strangers to debt problems, as evidenced by the recent financial crisis and housing bubble. However, these people are similar as well when it comes to the amount of debt that they think is acceptable to live with. The recent report has shown that consumers do not feel concern about their debts until the amount reaches £15,000. This number is a valuable figure to keep in mind, since many people at present are trying to improve their credit ratings in a push to be able to receive loans and other financial benefits.

The recent report was published and researched by the Scottish Provident, and the report was given the name of the Financial Safety Net study. The study showed that the exact number assigned to the level of acceptance was exactly £15,837, but this value could be taken up higher for those in different age groups. It seems that the younger demographic, those aged 18 to 34; higher levels of debt are acceptable. From this, one can see the overall sentiment about debt from the younger generation. In contrast, those aged over 55 found that much lower levels of debt were acceptable. While this finding is not considered to be startling, it is a concern for the future of the financial system. As more and more of the younger generation leverage their expenditures, the more and more insolvent certain financial systems become. Without the liquidity in the market, a crash seems likely.

The exact number that the study pinned to the level of acceptable debt for the younger generation, those aged 18 to 34, was 16,464 pounds. The older generation was found to be only accepting of levels of debt at levels a little above 14,000 pounds. The implications of these numbers are far reaching and serious. While the amount of debt in the current financial system is able to be balanced by the liquidity offered by certain investors and buyers of debt, the end game could be yet another financial crisis. For some in the UK, the actual result of the spending spree that much of the Kingdom has been on recently could be loss of ownership. Local and federal governments in the UK and in other nations such as the US have been selling off assets in a bid to add liquidity to the debt problem. This causes large problems when the public realises that its assets have been bought by foreigners.

The problem of debt is serious and is current. If those in the United Kingdom do not start to take the situation seriously and reduce the debt that they keep, the future will be full of similar times to the financial crisis of 2008 and 2009. As the recent report from the Scottish Provident demonstrated, the high levels of debt that people must take on before they realise there is a problem with their finances is alarming, considering the fact that the rest of the world is buying this debt and ownership of many assets in the United Kingdom.