The latest official figures have revealed that personal debt in the UK increased by the end of April, with individuals owing nearly as much as the whole of the country produces during a year.
The statistics released by Credit Action, show that the austerity measures are continuing to be felt by households in Britain, forced into borrowing more money in order to get by.
By the end of April 2012, the amount of personal debt outstanding stood at £1.459 trillion, an increase from the £1.451 trillion owed at the end of March 2011. Secured lending had also seen a hike, with £1.252 trillion outstanding, up from April 2011’s figure of £1.240 trillion.
Unsecured lending – consumer credit – was one of the few areas to decrease, down to £207 billion from £210 billion, compared to the figures from the year before.
Banks and building societies lent more money during April; up by £1.4 billion compared to the month before. Consumer credit loans were higher by £0.3 billion, whilst secured borrowing was higher by £1.1 billion.
However, an indication of the nation’s debt problems was highlighted by the amount of money which had to be written off. Over the course of 12 months, ending at March 2012, £6.3 billion of borrowing had to be written off. In the first three months of 2012 alone, £1.28 billion of debts were written off, equivalent to £14.03 million every day.
Based on trends in the first quarter of 2012, 105 properties are repossessed during every day, whilst 1,880 workers get made redundant (every day).
And it isn’t just the public who are struggling to keep their debts under control, the Public Sector Net Debt will continue to increase by £1,537 every second, based on the figures from April 2012.
The full report can be seen at http://www.creditaction.org.uk/helpful-resources/debt-statistics.html.