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Debt charity releases wide range of UK personal debt statistics

Debt charity Credit Action recently released a vast swathe of statistics regarding personal debt in the UK and how it has changed since last year. The first statistic which grabs your attention immediately is the fact that personal debt in the UK stands at £1.425 trillion, as of the end of June 2013. This is a truly enormous figure and is up from £1.421 trillion at the same time last year.

To put this figure into context, private individuals in the UK now collectively owe almost as much as the gross domestic product of the entire country.

Meanwhile, outstanding mortgage lending in the UK had reached £1.267 trillion at the end of last month, which is slightly up on the previous year. Unsecured lending such as credit card debt, car finance and store cards had reached £157.8 billion, which is almost identical to this time last year. These figures mean that the average household debt for a family in the UK stands at £54,067 including mortgages, and £5986 when not including mortgages.

When looking at the average levels of personal debt owed by single individuals in the UK including mortgages, the total now stands at £29,008; this amounts to 117% of average earnings. When not including mortgage debt and only looking at credit card debt, overdrafts and secured loans etc, the average UK adult is now in debt to the figure of £3211.

If you are currently dealing with personal debt, the first thing these statistics may make you realise is that you are certainly not alone and that personal debt is a huge national problem. To make this point even clearer, every day in the UK, 282 people are either declared bankrupt or insolvent. This means that a new bankruptcy or insolvency is declared every 5 minutes 7 seconds.

Furthermore, each day in the UK, 1317 CCJs are issued, with the average value of each CC J being £2766. Even more worrying than that, every day in the UK an average of 88 properties are repossessed due to mortgage debt.

The causes of debt

There are many different causes of personal debt and some of these recent figures help to explain how people start to suffer from money problems. Perhaps the number one cause of personal debt is unemployment, or the cost of living becoming too expensive for a person’s salary to cover. For example, 1293 people were unfortunately made redundant every day between March and May. Although the level of unemployment among people aged between 18 and 24 was down, the number of unemployed among people over 50 had risen.

As for the cost of living, it apparently now costs just over £29 a day to bring up a child from birth to 21 years of age. Meanwhile, the cost of filling up a car with 50 litres of fuel now costs an average of £67.90.

If you are currently struggling with personal debt and would like advice on how to get back in control of your finances, contact Dissolve Debt today to see how we can help. We have expert advisers familiar with all forms of personal debt, and you can start the ball rolling by completing our debt solution finder.

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