Personal debt continues to grow as figures for April show that the total debt owed by UK individuals is now greater than the whole country produces in a year.
The total amount of personal debt increased by £400 million in April and now stands at £1,460 billion, which exceeds the United Kingdom Gross Domestic Product (GDP).
Much of the increase was attributed to secured lending which rose by £0.5bn during the month, however the inability of borrowers to arrange mortgages is still hampering activity in the property market.
The national personal debt burden increased by 0.8% on an annual basis in April and the average household now owes £8,761, which excludes mortgages (£57,915 including mortgages).
The problem for consumers is that each adult owes on average, £30,228 which represents 126% of average earnings. This illustrates the high levels of personal indebtedness in the UK and the problems that this can cause. For example, a property is repossessed every 13.4 minutes and someone is declared insolvent or bankrupt every 51 seconds.
The Citizens Advice Bureau also sees 9,562 new cases across its branch network every day.