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23
JUL
2014

British Bankers’ Association figures reveal new personal loan debt hotspots

Using data from leading UK banks and building societies along with details from the 2011 census, the British Bankers’ Association (BBA) has recently issued new findings which show which areas in the UK are carrying the most personal loan debts, broken down into 9,000 separate postcode areas. The breakdown is quite precise, but more generally, Hampshire and Peterborough have the highest level, with a cluster of villages around Droxford being the very top of the pile, with an average of £1,880 per borrower.

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The BBA’s last figures were released three months ago and the top level of debt on that occasion was an area just north of Bath. This has now changed to include several villages in the Meon Valley of Hampshire, including Droxford, Exton, Corhampton and Soberton, with a total amount outstanding of £5.1m, which averages out at £1,880 per capita. This does not mean necessarily that everyone in the area owes this much – many adults living there will have much less, with others very much more. Although the area in second place, Peterborough, had much less total debt (£327,003) the postcode includes fewer people, so the average was very near to the Meon Valley at £1,869. In third place was an area of Newcastle – both it and the Peterborough postcode were in the top ten in the last released figures too.

Incomplete information may slew results

The published figures – which include areas of London, Galashiels and Manchester in the top ten – only represent information from a limited number of providers, so the actual results may be very different. The date was gleaned from Barclays, Lloyds Banking Group, HSBC, the Royal Bank of Scotland group, Santander, the Clydesdale and Yorkshire banks and Nationwide and although they represent about 60% of the personal loan market the remaining 40% include many lenders who lend to those with poor credit scores and the interest rates are often higher, causing problems with servicing the debt. Personal loan debt is a real burden to many and it tends to be the first port of call when people are finding it hard to make ends meet.

People in the postcodes don’t need to worry

Just living in one of the ‘hotspot’ postcodes is not alone a reason for concern, but for some it may be a wakeup call. Some people have levels of personal debt which are manageable when they have a certain lifestyle but can become a crushing burden if things change, such as redundancy, illness or a new baby. Separating from a partner can also be a trigger, as the same two salaries have to support two lots of housing and bills.

Dissolve Debt has well over a decade of experience in helping people manage personal debt and they can advise you how to get things back on track. If you are finding it hard to manage your finances, give us a call on either 0800 0122 111 from a landline or 0161 926 7670 from a mobile and start getting your life back today.

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