Global Household Debt: Key Statistics
- 84% of UK households held at least one form of consumer credit in 2024.
- 56% of US households carried unsecured debt in 2023, including credit card and student loan balances.
- In a 2020 survey, 91% of households in rural India (Tamil Nadu) reported borrowing to cover everyday expenses, repay previous loans or support relatives.
- 85.6% of Brazilian households reported credit card debt in 2023.
- 19% of French households had a consumer loan in 2025.
The Global Household Debt Crisis
According to a 2026 University of Bordeaux research paper, ‘How Many Indebted Households Worldwide? A Global Estimate of Everyday Household Debt’, roughly one third of the world’s population borrows to make ends meet.
This statistic doesn’t include people who borrow to buy a home or start a business, which equates to at least 2.59 billion people.
Below, we explain different types of debts around the world, why global debt is happening and ways to get debt support.
Different Types of Global Household Debt
One of the key issues the research paper explores is how different types of debt affect people around the world, yet lead to the same outcome. For example:
Jessica, a woman in her early thirties, lives in northern England with her young son. She works, but her income simply isn’t enough to cover everyday costs. This has led to her falling behind on rent, council tax and utility bills.
In rural India, families are forced to borrow just to cope with food, healthcare and their children’s education costs.
While these situations are very different, they share a common theme – debt has become a part of everyday life for most.
Why is Global Household Debt Happening?
The main reason that global debt is becoming an everyday problem falls down to the rising cost of living.
Across the world:
- Wages aren’t keeping up with essential costs: In many countries, wages have stayed still or grown slower compared to essential costs such as housing, healthcare and education. When income doesn’t cover necessary spending, borrowing becomes a way to fill the gap.
- Employment is becoming more unstable: As the research paper mentions, temporary contracts, informal employment, zero-hour arrangements and irregular working hours are becoming more common. This can lead to unpredictable income, which leaves many using credit as a way to pay for the necessities.
- Social protection can be difficult to come by: According to ILO (International Labour Organisation) data cited in the study, 42.6% of the world’s population lacked meaningful access to social protection in 2023. If public support is rolled back or cannot be provided, there is no safety net for unemployment, illness or other emergencies. And if public support is unavailable, people turn to borrowing to make ends meet.
Ways to Get Support
If you can’t afford the essentials and borrowing has become a necessity to cover everyday costs, there are ways to get support, such as:
- Debt Solutions:
- Bankruptcy: A formal insolvency procedure that you can apply for if you can show that either your debts exceed your assets or you are unable to pay your debts when they are due. There is no maximum level of debt you must have to apply.
- Debt Management Plan (DMP): Allows you to (flexibly) pay off what you can afford towards your debts each month. In 99.48% of cases, creditors will stop applying interest and charges.
- Debt Relief Order (DRO): Freezes and eventually writes off your qualifying debts if you have low income and very few assets. It is completely free and has no application fee. But there is strict eligibility criteria and you must apply through an authorised organisation.
- Debt Solutions for Scottish Residents: If you live in Scotland, the solutions available to you are different. For example, you can apply for a Debt Payment Programme (DPP) which is part of a Debt Arrangement Scheme (DAS). This allows you to repay your debts by making one monthly payment of whatever you can afford after you pay your essential bills.
- Individual Voluntary Arrangement (IVA): Freezes your debt and allows you to pay your creditors back over a specific period (usually 5-6 years). Any money you owe after this period is written off.
- Emergency Food Banks, Community Support & Other Resources:
- Local organisations can usually provide 3 days’ worth of emergency food but most will require a referral voucher from a doctor, social worker or Citizens Advice. You can find networks via the Trussell Trust, Bankuet® or the Independent Food Aid Network UK.
- FoodCycle offers free community meals with no need for a voucher or referral.
- Local volunteers and supermarkets (including some Lidl branches) give away fresh, surplus food nearing its sell-by date for free on an app called Olio.
- Free Debt Advice: If you’re completely unsure what to do, our experts offer free*, confidential and impartial debt advice to help you come up with a plan that should help you get back on track.
- Reduced Payment Plans: If you’ve fallen behind on your priority debts (e.g. energy/water bills, council tax, mortgage/rent payments, etc.), you should reach out to your creditor(s) straight away. Most organisations will agree to a temporary reduced payment plan that allows you to repay what you can afford more comfortably.
- State Benefits: Always check which state benefits you are entitled to. Several of these payments increased in 2025, including:
- Universal Credit (including the child element)
- Carer’s Allowance
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA) for children
Is Debt a Part of Your Everyday Life?
If debt has become a part of everyday life, please get in touch with our expert debt advisors via email, phone, WhatsApp or online chat. Alternatively, try our free* online debt advice tool, which takes less than 15 minutes to complete.
*Our advice is free, but if you sign up for a debt solution with us, fees will apply.
