Personal Debt Climbs To GBP1.4 Trillion

Thu, 10 Mar 2011

Average interest paid by each household on their total debt is approximately £2,593 each year, with Britain's total interest repayments on personal debt reaching £65.3 billion in the last 12 months.

The Credit Action statistics also reveal that some 337 people are declared bankrupt or insolvent every day, while a further 1,000 are trying to get some kind of formal debt rescheduling. The average debt of a bankrupt is £31,000.

Una Farrell, also of the Consumer Credit Counselling Service (CCCS) says she fears that the situation in the UK "is only going to get worse as household budgets are subject to inflation, welfare benefit changes, likely interest rate rises and redundancy ".

"This pain will not be felt evenly," she adds. "Certain groups are likely to be squeezed more than others such as low and middle income earners and pensioners ."

The Office for Budget Responsibility predicts that personal debt will reach £2,113 billion by the end of 2015, which would take the average household debt to a staggering £83,849 per household.
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