Consumer debt continues to rise
Published On 2 August 2007
Consumer debt in the UK - including mortgages and credit card borrowing - rose again in June and now stands at £1.345 trillion, new figures show.Data released by Credit Action shows that consumer debt in the UK has increased by £107 billion in the last 12 months.
Credit lending to individuals has increased by 5.2 per cent since June 2006 and now has reached £214 billion.
While most UK debt is made up of mortgage borrowing, the typical adult in the UK owes £4,550 via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans.
A statement from the charity noted: "There are more credit cards in the UK than people according to Apacs. At the end of 2006 there were 74.4 million credit and charge cards in the UK compared with around 60 million people in the country."
When combined with mortgage borrowing, this means that an average household in the UK has to pay £3,660 each year servicing this debt - roughly nine per cent of take-home pay.
Credit Action also revealed that these debt levels mean that 330 people in the UK declare themselves bankrupt or seek an IVA every day.
