March 2007 Debt Statistics
Debt statistics are updated monthly. Government, banks, and loan firms use these numbers to determine how they do business. Consumers can use these numbers to differentiate between ad copy - meant to sell products - and a real look at the UK economy
The total UK personal debt exceeded £1.25 trillion. At the end of January 2007 it stood at £1,300bn. The growth rate increased to 10.5 per cent for the previous 12 months, or an increase of £114bn.
Total secured loan lending exceeded £1 trillion (£1,000 billion) and at the end of January 2007 it stood at £1087bn, an 11.5 per cent increase over the last 12 months.
The average household debt in the UK is £8,795 (excluding mortgages) and £53,701 including mortgages. This is far less than IVA and debt management firms are claiming. These numbers bring the supposed ‘debt mountain’ to a more manageable ‘hill’ – and corroborates the Bank of England’s numbers.
Average owed on loans by every UK adult is £27,638 (including mortgages). This grew by £200 in February 2007.
The average interest paid by each household this year is approximately £3,425 each year.
The average unsecured consumer borrowing via credit cards, motor and retail finance deals, overdraft loans and unsecured personal loans rose to £4,526 per UK adult at the end of January 2007.
Britain’s personal debt is increasing by £1 million every 4 minutes.
This paints a strong picture of the average UK consumer’s ability to manage their debt. While many households are struggling under debt, many analysts believe that a good debt management councillor will serve most UK consumers better than an IVA firm.