Britain’s debt level up 10% in a year

The overall amount of personal debt accounted for by UK consumers rose by around ten per cent during the 12 months to the end of September 2007, according to the latest data from Credit Action.

Close to £1,380 billion is now owed by British consumers and this debt management burden is increasing by around £1 million every four minutes, the charity reports.

Moreover, the average amount owed by a British household now stands at £55,403 and at £8,681 if mortgages are not entered into the equation.

“Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,554 per average UK adult at the end of September 2007,” a statement from Credit Action explained.

Earlier this year, accountancy firm Grant Thornton revealed that the UK’s debt management burden is now worth more than its overall annual gross domestic product.