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UK personal debt hits £1.46trn

  • 03/06/2010
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UK personal debt hits £1.46trn
Individuals in the UK now owe more than the whole of the UK produces in a year, according to Credit Action, with personal debt totalling £1.46trn at the end of April, an annual growth of 0.8%.

Figures compiled by Credit Action showed that total lending in April rose by £0.4bn, while secured lending increased by £0.5bn to £1.239trn at the end of April.

This meant that the 12-month growth rate has fallen to 0.9%.

Consumer credit lending also fell by £0.1bn in April to £221bn, resulting in the annual growth rate of consumer credit falling by 0.2% to -0.1%.

Credit Action said that the average household debt in the UK is £57,915 including mortgages and £8761 excluding mortgages.

Yet, if debt including mortgages is added to the public sector net debt expected in 2014-15 (excluding financial interventions) as reported in the March 2010 Budget, the amount rises to £113,709 per household.

In addition, the average owed by each adult in the UK stands at £30,228 including mortgages, equivalent to 125% of average earnings.

Britain’s interest repayments on personal debt were £67.9bn in the last 12months, with the average interest paid by each household on their total debt around £2695 each year.

Meanwhile, the average outstanding mortgage for the 11.1m households who have a mortgage is £108,809.

Credit Action also stated that 107 properties were repossessed each day during the first quarter of 2010, while 203 mortgage possession claims with be issued and 158 mortgage possession orders will be made today.

Landlords are feeling the effects of the economic crisis even more, with Credit Action claiming 363 landlord possession claims will be issued and 238 landlord possession orders will be made today.

Nevertheless, the number of repossessions being made by lenders has fallen 7.5% on Q4 2009.

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