Personal debt ‘a serious issue’ in the north

Consumers living in Leeds, Manchester and Preston are racking up significant personal debt when compared to other parts of Britain.

A major joint study by the British Bankers Association (BBA) and the Council of Mortgage Lenders highlights how serious the situation is, with over £1 trillion in loans owed throughout the country.

As part of the research, the figures were broken down by postcode to give a clearer indication of which areas are struggling to make ends meet. 

LS17 0 in Leeds was found to owe the highest amount in personal loans with an average of £1,516, followed by M3 3 in Manchester (£1,408) and PR7 7 in Preston (£1,270). Postcodes in Chester, Swansea and Hull also featured prominently, while Milton Keynes was the only place to be in the top ten twice. 

Traditionally, there has been something of a north-south divide in the UK when it comes to finances. However, despite the fact people in the north are on the whole borrowing more, there are also significant arrears issues in London, with the city accounting for one quarter of the country's total mortgage debt.

Commenting on the figures, BBA chief executive Anthony Browne said: "This publication shows the amounts that households and businesses are borrowing in the vast majority of postcode sectors across Britain. It is a move that makes the British financial services industry significantly more transparent."

If people are struggling with their finances, the last thing they should do is hide it from their partners. A recent study by Prudential uncovered that over one in five individuals withhold information about their financial situation.

On average this equates to £7,800 and this could create serious problems for the relationship further down the line if action is not taken, which highlights just how important debt management solutions can be.

By James Francis