Personal debt statistics released

Credit Action has set out the UK personal debt statistics for October 2009, revealing that the average amount owed by households – including mortgages – rests at £58,290.

Excluding mortgages, the typical debt per household is £9,180, although this would increase to £21,355 if the average was taken based on those who have unsecured loans of some kind.

Furthermore, Credit Action has revealed that the total level of UK personal debt at the end of August 2009 was £1.457 billion, with the lending level for the period rising by £0.7 billion.

Lending to individuals was £230 billion, with a fall in the annual growth rate of consumer credit to 0.7 per cent. Secured lending on houses was £1.228 billion.

Earlier this month, Louise Bond from uSwitch.com recommended debtors manage their current accounts wisely to avoid excessive bank charges, in the wake of decisions from NatWest and the Royal Bank of Scotland to cut prices for unarranged borrowing.

By Sarah Adie