Household debt rises for 2nd consecutive month

Credit Action's May debt statistics reveal that average household debt rose For the second time in three months, suggesting growth in unsecured debt levels is becoming entrenched.

Related topics:  Finance News
Millie Dyson
10th May 2012
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Prior to the start of 2012, unsecured debt levels had declined in every single month since January 2010. However, latest available data shows that average household debt (excluding mortgages) rose by £34 in January 2012, and after a slight decline in February, increased again by £19 in March, report Credit Action.

Key findings:

- Average household debt (excluding mortgages) rose by £19 to £7,903 while average household debt (including mortgages) rose by £52 to £55,436.

- Outstanding personal debt in March was £1.458 trillion (up from £1.451 trillion in March 2011). This is almost as much as the annual GDP during 2011.

- The consumer borrowing per UK adult was £4,231 in March, a rise of £10 from February.

- Daily purchases using plastic cards increased to £1.501m during February. 

- £172m of interest on personal debt was paid every day in March.

- 883,000 people have been unemployed for over a year.

- 314 people are declared insolvent or bankrupt every day.

- £16.23 of loans are written-off daily by UK Banks and Building Societies.

- Every 15 minutes 28 seconds a property is repossessed.

- CAB deal with 8,518 new debt problems each working day.

- The cost to fill a 50 litre tank with unleaded petrol was £71.25 in April.

Michelle Highman, CEO of Credit Action said:

"Based on figures for the first three months of the year, it certainly seems as if the burden of consumer credit debt has started to increase. Whilst debt isn't necessarily a bad thing in itself, it can quickly become a very serious problem if you're unable to pay it back.

"That's why it's absolutely crucial for consumers to be on top of their money, particularly given the fact that we're now in a double-dip recession. Credit Action offers a range of free products that can help you do this."
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