Interest repayment levels ‘soaring’

Interest repayment rates in the UK have been soaring over the past 12 months, according to the latest data from the Credit Action charity.

The organisation reports that the amounts being paid out as interest by Britons with debt management issues has increased by close to 17.25 per cent in the past year.

“Britain’s interest repayments have soared by £13.9bn to a record £94.5 billion in the last 12 months,” a statement from Credit Action explained.

Overall consumer credit lending figures grew by around £1.1 billion during November of last year and the overall debt management burden nationwide now amounts to more than £1,400 billion.

In addition, at the end of November, the average individual in the UK owed £190 more than was the case a month before, the charity’s latest data indicates.

Earlier this month, accountancy firm Grant Thornton warned that the UK’s insolvency rate is likely to increase considerably in the early part of this year.