Average household debt `five times annual income`

The average household owes five times its annual income in debt, according to The Times.

The calculation is based on Halifax`s recent claim that the average mortgage outstanding on a UK home is £112,000, along with an ONS (Office for National Statistics) report that said average regular pay currently stands at £22,100 a year.

This means the average household with one wage-earner has long-term debt of 507% of its annual income - and this doesn`t include short-term debts, such as personal loans and credit cards.

A spokesperson for debt management company Gregory Pennington said: "It can be quite surprising to see how much debt the average household owes, although it`s important to remember that a mortgage is a long-term debt that most homeowners will pay back with no problems.

"What`s more serious is if a borrower finds themselves unable to pay that amount of debt - for example, if they become unemployed, or if their income falls. Anyone struggling to repay their debt should speak with a debt adviser about a possible solution."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.