Today the UK’s leading financial capability charity The Money Charity releases its Debt Statistics, giving an overview of the financial situation in the UK.
UK household debt is at its highest point since 2009 and is set to rocket, according to the latest Office for Budget Responsibility (OBR) forecasts, outlined in the 2014 Budget. The OBR estimate for the end of March 2014 currently stands at £1.574 trillion, and is expected to increase at a significantly faster rate than it has over the past five years.
Since 2009, the household debt estimate in the UK has increased by 2.8%; however, according to the OBR’s economic forecast released alongside the Budget, the total household liability is set to increase by a far greater amount between now and 2019 than it has done previously. OBR now expects UK households to be in £2.251 trillion of debt by 2019, an increase of a staggering 43%.
Notably, the estimate of household debt in the UK in Q1 2019 has also gone up by £63bn since the forecast released alongside the Autumn Statement was published – amounting to an additional £2,423 of debt per household, figures from the latest Debt Statistics show.
Michelle Highman, Chief Executive of The Money Charity, comments;
“The significant rise in the OBR’s estimated UK household debt over the next 5 years is likely to be driven by a hike in house prices (and therefore mortgages) and households saving a little less. However what it highlights for certain is the continuing need for support systems to be in place as individuals & households take on bigger and bigger debts. People need to be equipped with the skills and knowledge to manage their money well and stay on top of their debts.
Creating a budget is one of the best ways to help manage your money in order to tackle debt and reign in your spending. The Money Charity has a range of free tools and resources to help you get on top of your money (themoneycharity.org.uk). However, if you worried about keeping up with your debts, seek advice from one of the free and independent organisations available, including StepChange Debt Charity (0800 138 1111).”
Latest figures include:
- £54,472: average household debt (including mortgages) in February, up from £54,408 in January
- £6,018: average household debt (excluding mortgages) in February, up from £6,015 in January
- £162 million of interest was paid every day on personal debt in February
- £1.498 billion: daily value of all plastic card purchases in January
- 1,282 people were made redundant every day between November and January
- 828,000 people had been unemployed for over a year, between November and January
- Every 5 minutes 25 seconds someone was declared bankrupt or insolvent
- £1.439 trillion was the value of outstanding personal debt at the end of January, up from the same period last year
- £64.80: the cost to fill a 50 litre tank with unleaded petrol in February 2014
- 79 properties are repossessed every day
You can get the full picture at http://themoneycharity.org.uk/debt-statistics/
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.
The Money Charity is registered with the Charity Commission as a charity in England and Wales, number 1106941. A company limited by guarantee, incorporated under the Companies Act 1985, and registered in England and Wales, number 5244075.
Registered Office: 15 Prescott Place, London, SW4 6BS