In Q2 2010 they wrote off £3.47bn (£2.14bn of that was credit card debt). This amounts to a write-off of £38.06m a day.Write-off rate on consumer lending by UK monetary financial institutions to individuals increased further in 2010 Q2 to 7.4%.
Total UK personal debt at the end of August 2010 stood at £1,428bn. The twelve-month growth increased by 0.9%. Individuals owe more than what the whole country produces in a year. Total lending in August 2010 rose by £1.5bn; secured lending increased by £1.7bn in the month; consumer credit lending decreased by - £0.1bn (total lending in Jan 2008 grew by £8.4bn).
Total secured lending on dwellings at the end of August 2010 stood at £1,240bn. The twelve-month growth rate remained at 1.0%. Total consumer credit lending to individuals at the end of August 2010 was £216bn. The annual growth rate of consumer credit was unchanged at 0.2%.
Average household debt in the UK is ~ £8,590 (excluding mortgages). This figure increases to £17,896 if the average is based on the number of households who actually have some form of unsecured loan. Average household debt in the UK is ~ £56,690 (including mortgages).
If you add to this the March 2010 budget report figure for public sector net debt (PSND) expected in 2015-16 (excluding financial interventions) then this figure rises to £108,931 per household. Average owed by every UK adult is ~ £29,349 (including mortgages). This is 124% of average earnings.
Average outstanding mortgage for the 11.4m households who currently have mortgages now stands at ~ £108,956. Britain's interest repayments on personal debt were £66.0bn in the last 12months. The average interest paid by each household on their total debt is approximately £2,619 each year.
According to PwC the average household will need to spend approximately 15% of net income purely to service the interest payments arising from this debt. Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,447 per average UK adult at the end of August 2010.
The Office for Budget Responsibility (OBR) predicts that household debt will be £1,823bn by end 2015 which is a growth of £159m a day. This would take the average household debt to £72,341 per household.
