Personal debt level rising by £300m every day

The level of personal debt among UK consumers is rising by just over £300 million every day, according to the latest figures from Credit Action.

Collectively, British borrowers pay out close to £258 million in interest each day and the average credit consumer has a debt management mountain – excluding mortgages – worth around £9,220, the charity reports.

The typical household pays out £3,790 every year to service the interest on the loans and credit card deals they have taken out, which is an increase of £343 compared with 12 months ago.

Furthermore, around 123 properties are repossessed across the country on a daily basis and one person declares themselves insolvent or bankrupt every four minutes.

“Britain’s interest repayments have soared to £94.3 billion in the last 12 months,” a statement from Credit Action explained.

A Prudential report last week suggested that money problems are the number one concern for families and individuals across the UK.

Written Giles Stevenson