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April Debt Statistics Show Debt Soaring in the Spring
Figures released this month by debt charity, Credit Action, have revealed that the total amount of personal debt in Britain grew to more than £1,421 billion in February.
This represented an 8.9 per cent increase from the previous year - a total increase of £111 billion - and Britain's personal debt continues to grow by £1 million every five minutes.
The total amount of debt secure on UK homes was £1,194 billion by the end of February - an increase of 9.4 per cent since 2007 - while the amount of lending to individuals by the same date stood at £227 billion, an increase of 6.6 per cent.
In February alone, the total amount of lending grew by £9.8 billion, of which £7.4 billion was secured lending on properties and £2.4 billion was consumer credit for individuals.
On average, individual consumer borrowing through overdrafts, unsecured personal loans, credit cards, and motor and retail finance deals had increased to around £4,774 per British adult by the end of that month.
Total interest repayments across Britain have risen to some £94.5 billion in over the past year. The average British household now pays around £3,794 in interest every year - a £380 increase since February 2007.
The average level of debt in Britain’s households is around £9,100, although this figure excludes mortgages. However, if average household debt is based on those which have any kind of unsecured loan, the figure rises to £21,166.
When mortgages are taken into account, then average British household debt stands at £57,050 - with every adult in the UK owing an average of £29,926.
For mortgage holders - some 11.8 million households across Britain - the average amount remaining on their loan is currently around £100,990.
Some 40 per cent of homeowners are also repaying secured debts of more than £90,000, however. This is double the amount of homeowners in that position four years ago.
Loan News posted on 11 April 2008
