Banks write-off lowest amount of loans for over 6 years

4th September 2013 – financial capability charity Credit Action releases its Debt Statistics, giving an overview of the financial situation in the UK.

In the 12 months leading up to July 2013, UK Bank and Building Societies wrote-off £3.67 billion of loans to individuals; the lowest amount for over 6 years. In Q2 of this year, they wrote-off £694 million, of which £371 million was credit card debt – amounting to a daily write-off £7.61m. The total write-offs have continued to follow a steady downward trend since 2012, but the Q2 fall is the most significant since mid-2011.

Latest figures include:

£54,110: average household debt (including mortgages) in July, up from £54,014 in June

£6,005: average household debt (excluding mortgages) in June, up from £5,931 in June

£164 million of interest was paid every day on personal debt in July

£1.432 billion: daily value of all plastic card purchases in June

1,348 people were made redundant every day between April and June

909,000 people had been unemployed for over a year, between April and June

Every 5 minutes 7 seconds someone was declared bankrupt or insolvent

£1.426 trillion was the value of outstanding personal debt at the end of July, up from the same period last year

£68.75: the cost to fill a 50 litre tank with unleaded petrol in July

Every 17 min 4 sec a property is repossessed

You can get the full picture at www.creditaction.org.uk/debt-stats.


Michelle Highman, Chief Executive of Credit Action comments: “The Banks on-going downward trend in the amount of individual loans they are writing-off is certainly interesting; we hope that it indicates a decrease in extreme debt situations, rather than a toughening of the banks stance on such issues. In other areas of the report we are seeing marginal, fluctuating changes; there are no big improvements, but there have been no major upsets either. Unemployment figures continue to decrease slightly and people in employment have risen, which is really positive. Let’s just hope it persists in this direction!” 

“Credit Action has a range of free tools and resources to help you get on top of your money (www.creditaction.org.uk). If at any stage you feel that your debt is becoming a problem contact a free debt advice agency such as StepChange Debt Charity (0800 138 1111).”

ENDS

Notes for editors:

Credit Action is the UK’s financial capability (financial education) charity.  Our vision is that everyone has the ability to be on top of their money as a part of everyday life.  We empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money throughout their lives.

 

Media Contact: Lauren Roberts – laurenroberts@creditaction.org.uk   020 7062 8932