UK Personal Debt Statistics Still Cause Concern

Published: 3 June 2010 By MoneyHighStreet Staff 1 Comment

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.

Debt problemsThe 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.

Comments

One Response to “UK Personal Debt Statistics Still Cause Concern”
  1. Rob Ward says:

    Why does no one point out that all of this increase in personal debt represents spending on lifestyle which the spender can not (and never could) afford. No progress will be made until spending is down to below income. The education system in this country has failed to teach people the discipline of budgetting and the meaning of responsibility, but the fact is that aspirations must be reduced. I blame Mr Keynes and his perpetual motion (growth) theories.

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