This infographic, supplied by MoneyDebtandCredit.com examines the debt problems plaguing the United Kingdom in lurid detail. According the graphic, the total personal debt in the U.K. amounts to a monstrous 1.454 billion, which, sadly, is more than the country’s annual output. Now, I’m no economics expert, but there’s something very, very wrong with that picture.
The future impact of the fact that the U.K. owes more in personal debt that the country’s total GDP is not yet known. Obviously, if the country was a business, it would have to close its doors if this continued for a long enough time. But countries are not businesses, and these days, an economic collapse of any first world country would send ripples through the global economy. So, it seems unlikely that Britain will have to deal with the consequences of its debt problem for a very long time.
The graphic notes that interest rates are expected to rise this year, which will cause many consumers to face higher monthly payments at a time when they already struggling to meet their existing outgoings. Even more disturbing is that the average person already on a debt management system plan has unsecured debts to the tune of $28,578 (converted to U.S. dollars), with 19 percent owning more than 48,004.29 on credit cards, overdrafts, personal loans, store cards and credit cards. This amounts to 126 percent of average earnings.
46 percent of personal debt is on credit cards. The graphic asks: “What is the makeup of the type of personal debt for the average British, upstanding citizen-and I use the word “upstanding” loosely, as I don’t really consider someone in gratuitous debt to be upstanding :). Let’s break it down.
Credit Cards: 52 percent
Personal loans: 36 percent
Overdraft: 3 percent
Catalogue, store loans, HP Secured loans: 2 percent
Other: 6 percent (Don’t ask what’s in this other category. Believe you me; you don’t want to know.
I think the true nature of this crises can be characterized by this mind-blowing stat: a whopping 372 people a day will be declared bankrupt or insolvent.
This design is better than average, but it’s not superlative. Overall, it’s very strong with appealing colors, charts and graphics.
The content makes your brain and your heart race. The mind boggling stats found in this graphic are enough to make anyone go into spasms. The debt problems of the human race are in fact so horrific that a horror movie about them could be made.