The latest statistics have shown that levels of personal debt in the UK are continuing to rise, with household debt also on the increase.
The monthly figures, released by Credit Action, have revealed that the UK is starting to seriously struggle with the lack of growth in the economy, coupled with the austerity measures, with many resorting to borrowing to survive.
At the end of May 2012, the amount of personal debt outstanding nationally stood at £1.460 trillion, an increase from April 2012 (£1.459 trillion), as well as May 2011 (£1.451 trillion). Unsecured loans were lower than 12 months before, £208 billion compared to £210 billion, but higher than the previous month when it had dropped to £207 billion.
Secured lending remained flat between April and May 2012 at £1.252 trillion, up from £1.241 trillion in May 2011.
The average overall household debt in the UK also crept higher, rising to £7,891 from £7,879 in April, an indication of the growing trend to rely on credit. The average amount of debt per adult, including mortgages, rose to £29,722, up from £29,706
The average amount of consumer credit held per adult (which includes debts such as credit cards, overdrafts, catalogue accounts, unsecured loans and retail finance agreements), climbed to £4,225 from £4,219 in April. The latest information for credit card purchases shows a total of 28.4 million transactions every day in the UK, reaching a combined total of £1.392 billion.
However, there was some good news. The number of redundancies showed a downward jump, falling from 1,880 every day to 1,694. And filling up a 50 litre tank with unleaded petrol also became cheaper, dropping from £69.20 in May to £66.90 in June, a bit of much needed relief for cash-strapped motorists.