UK personal debt figures published
Article by Paymex 2nd Mar 2010 00:00
New monthly figures from Credit Action show that UK personal debt at the end of January 2010 stood at £1,463bn, a 0.8% growth over the last 12 months.
Total lending in January 2010 rose by £2.0bn; secured lending increased by £1.5bn in the month; consumer credit lending increased by £0.5bn (total lending in Jan 2008 grew by £8.4bn).
Total secured lending on dwellings at the end of January 2010 stood at £1,237bn. Total consumer credit lending to individuals at the end of January 2010 was £225bn. The annual growth rate of consumer credit was less negative at – 0.2%.
Average household debt in the UK is £8,939 (excluding mortgages). This figure increases to £18,623 if the average is based on the number of households who actually have some form of unsecured loan. However average household debt in the UK is ~ £58,040 (including mortgages).
The average outstanding mortgage for the 11.1m households in the UK who currently have mortgages now stands at ~ £111,474.
Britain’s interest repayments on personal debt were £68.3bn in the last 12months. The average interest paid by each household on their total debt is approximately £2,710 each year. According to PwC the average household will need to spend approximately 15% of net income purely to service the interest payments arising from this debt.
Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,667 per average UK adult at the end of January 2010
(Source – Credit Action UK Debt Statistics)
Baines and Ernst Ltd