Personal debt sees £56bn increase

The UK’s total personal debt has increased by approximately £56 billion over the last 12 months, new figures have revealed.

According to Credit Action, debt totalled £1,456 billion at the end of November 2008, meaning personal debt has now exceeded UK gross domestic product, which currently stands at £1,410 billion.

The statistics show average household debt, including mortgages, is £59,670, with UK adults owing an average of £30,420.

And those in financial difficulty may wish to seek debt advice in the near future if they are to avoid falling into further trouble, as interest repayments of personal debt have increased to a total of £92.1 billion over the past 12 months.

The figures support a recent survey from KPMG, which predicted that at least 150,000 people will become insolvent during 2009.

According to the financial services firm, the average person who has entered into an Individual Voluntary Arrangement (IVA) owed £47,000 during 2008.

By Tom Musk

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