UK households are running up debts averaging £15,385 in 2019 to credit card companies, banks and other lenders according to figures released by the trade union body, the TUC. The increasing amount of household debt has continued to rise in recent years in times of austerity and wage stagnation giving homeowners little option but to escalate their borrowing.

Of course, with so many loan companies, online deals and credit card firms offering you deals, it’s easy to see why so many Brits are finding themselves in financial bother. However, personal debts can become overwhelming and there’s plenty of dangers in plummeting further and further into the red over time.

Here’s a few of the other downsides to running up too much debt:

Credit score

Your credit score is really important when it comes to making a large purchase further down the line, such as buying a house. Roughly 30% of your credit score is linked to how much personal debt you have in comparison to how much you have borrowed and your credit card limits. The higher the amount of debt in comparison to your credit card limit will give you a lower credit score. Having a low credit score will impact in other spending areas such as getting car insurance or renting a property.


Losing control of your finances and building up debt can put a strain on your marriage with a dip in financial security having an impact on your partner and children. Money is one of the commonest things to argue about for a couple with questions raised over who is creating the debt, who is spending the money and who is bringing the money into the household. These arguments can really prove a sticking point in relationships and lead to long-term marital problems.

Debt is like a vicious circle

Using contactless on your debit card or being tempted into another loan deal can be very addictive but the truth is that you will have to pay back all monetary debt eventually. Every time you take out a loan, you will actually pay more back than you originally borrowed due to the interest rate charged by the lender. So you will be losing more money and could face being harassed by loan sharks if you don’t stick to regular repayments. The increased length of time it takes to repay a loan means you will have a higher debt load and you will pay more interest off over time.

Stops your from moving forward financially

Having monthly repayments on credit cards and other loans can prevent you spending your money on other things such as your family, holiday and home improvements. You may be under pressure to put some aside each month for that dream family holiday you’ve always craved. But if you’re paying back multiple loans each month which eat into your pay packet, then you might really struggle to cover that family vacation.

Debt can stop you getting on the property ladder

Mortgage lenders will access your credit score, student loan debt and other loans when you go about trying to buy a house. If your loan debts are mounting on top of other bills and general outgoings, a mortgage lender won’t be keen to lend you even more money. You may end up in vicious circle or renting and paying off someone else’s mortgage, or worse still being stuck at home in your parents’ house.

So when it comes to getting in debt, it’s wise to not borrow more than you can pay back and consider if you really need to take a loan out in the first place. Budget wisely and look out for hefty interest rates if you really are intent on borrowing money over time.