Have low interest rates encouraged us to live beyond our means?
Latest data released by ONS (Office of National Statistics) shows that UK households have seen their outgoings surpass their income for the first time in nearly 30 years. But what is driving this behaviour to apparently borrow more and save less?
In 2017 on average each UK household spent £900 more than they received in income, amounting to almost £25 billion. The last time households became net borrowers was in 1988, although the deficit then was significantly less at £ 0.3 billion.