Renters in trouble as personal debt hits new high

Renters in trouble as personal debt hits new high

 

Today financial capability charity The Money Charity releases its Debt Statistics, giving an overview of the financial situation in the UK.

 

The latest figures highlighted by The Money Charity indicate that increasing numbers are struggling to keep up with paying their rent each month.  Over the last few months there has been a significant increase in landlords issuing claims against their tenants in the county courts of England and Wales. The number of orders for possession, both outright and suspended, is also increasing with nearly 70% of claims resulting in some form of order.

 

Total UK personal debt has reached a new high, climbing above its September 2008 peak for the first time since the financial crisis. Unsecured debt as a whole and credit card debt both fell, so it was the rise in secured debt that created the uplift.

 

The concept of peaks and troughs in personal debt does need to be placed into the context of pre 2008. Our chart shows the path of personal debt since it first broke through the one trillion pound mark in June 2004. The recession has seen a steadying in borrowing, not a massive fall back, only time will tell whether the appetite for credit has permanently diminished or has merely been starved for a while.

 

Commenting on the findings, Michelle Highman, CEO of The Money Charity said:

 

“We know that many people feel trapped in the rental sector, unable to save the deposit required to purchase their own home.  This is in part due to the high level of rents they are forced to pay. That increasing numbers are unable to even sustain their rental payments is particularly worrying.

 

The Money Charity has a range of free tools and resources to help you get on top of your money (themoneycharity.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).”
Please find a snapshot of the latest figures below.  You can get the full picture at: http://themoneycharity.org.uk/debt-statistics/

Latest figures include:

  1. £54,124: average household debt (including mortgages) in October, up from £54,066 in September
  2. £6,004: average household debt (excluding mortgages) in October, down from £6,010 in September
  3. £162 million of interest was paid every day on personal debt in October
  4. £1.527 billion: daily value of all plastic card purchases in September
  5. 1,359 people were made redundant every day between July and September
  6. 890,000 people had been unemployed for over a year between July and September
  7. Every 5 minutes 3 seconds someone was declared bankrupt or insolvent during Q3 2013
  8. £1.430 trillion was the value of outstanding personal debt at the end of October, up from the same period last year
  9. £65.23: the cost to fill a 50 litre tank with unleaded petrol in November
  10. The Government borrowed an estimated £3,117 every second during October

 

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Notes for editors:

The Money Charity 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: Liz Dunscombe – liz@themoneycharity.org.uk  020 7062 8930