Total UK personal debt ‘on the increase’

Total personal debt in the UK is on the rise, new figures have suggested.

According to statistics provided by Credit Action, the amount stood at 31…

Total personal debt in the UK is on the rise, new figures have suggested.

According to statistics provided by Credit Action, the amount stood at 31,455 billion at the end of September.

This sum means individuals now owe more than what the whole country produces in a year, while the 12-moth growth amount rose by 0.8 per cent across the month.

Moreover, total lending in the period swelled by £0.4 billion and secured lending increased by £0.1 billion.

Consumer credit lending over the four-week timeframe also elevated by £0.3 billion.

The figures showed total secured lending on dwellings at the end of the month stood at £1,240 billion, following a slight decrease in the 12-month growth rate to 0.8 per cent.

Consumer credit lending to individuals amounted to £216 billion after the annual growth rate escalated from 0.3 per cent to 0.6 per cent, while the write-off rate on consumer lending by UK monetary financial institutions to adults jumped to 7.4 per cent.

The numbers mean the average household debt in the UK – excluding mortgages – is currently £8,562, while the figure leaps to £357,737 when the home loans are taken into account.

When amounts are based on the number of households that have some form of unsecured loan, the sum adds up to £17,838 excluding mortgages.

Research recently carried out by the Post Office revealed people in Britain have borrowed more than £7 billion from their close friends in an attempt to plug the gaps in their income.

By James Francis

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