Household Debt Crisis? The UK’s £2 Trillion Problem Explained

With UK household debt surpassing £2 trillion, and unsecured debt averaging £14,300 per household, this is a growing concern for the economy in 2025. Rising mortgage costs, increasing reliance on consumer credit, and a squeeze on disposable incomes have left many households financially vulnerable. But what does this mean for the wider economy?

In this video, we’ll explore: 🔹 The main sources of household debt – from mortgages and credit cards to student loans and car finance

🔹 The impact of rising mortgage rates on spending and economic growth

🔹 Why high household debt could lead to defaults and financial instability

🔹 The broader macro implications – will it slow down UK economic recovery?

By the end of this video, you’ll understand why household debt matters, how it links to interest rates, inflation, and GDP, and what it means for businesses, policymakers, and consumers alike!