UK Personal Debt
People in the UK owed £1.508 trillion at the end of October 2016. This is up from £1.455 trillion at the end of October 2015 – an extra £1041.23 per UK adult.
The average total debt per household – including mortgages – was £55,855 in October. The revised figure for September was £55,688.
Per adult in the UK that’s an average debt of £29,862 in September – around 113.6% of average earnings. This is slightly up from a revised £29,773 a month earlier.
Based on October 2016 trends, the UK’s total interest repayments on personal debt over a 12 month period would have been £50.831 billion.
- That’s an average of £139 million per day.
- This means that households in the UK would have paid an average of £1,883 in annual interest repayments. Per person that’s £1,007 – 3.83% of average earnings.
According to the Office for Budget Responsibility’s November 2016 forecast, household debt is predicted to reach £2.294 trillion in Q1 2022. This makes the average household debt £84,964 (assuming that the number of households in the UK remained the same between now and then).
Outstanding consumer credit lending was £190.13 billion at the end of October 2016.
- This is up from £177.3 billion at the end of October 2015, and is an increase of £254.53 for every adult in the UK.
Per household, that’s an average consumer credit debt of £7,042 in October, up from a revised £6,999 in September – and £476.07 extra per household over the year.
It also means the average consumer credit borrowing stood at £3,765 per UK adult. This is up from a revised £3,740 in September.
Total credit card debt in October 2016 was £66.2bn. Per household this is £2,452 – for a credit card bearing the average interest, it would take 25 years and 6 months to repay if you made only the minimum repayment each month.
- The minimum repayment in the first month would be £58 but reduces each month. If you paid £58 every month, the debt would be cleared in around 5 years and 4 months.
Total net lending to individuals by UK banks and building societies rose by £4.9 billion in October 2016 – or £159m a day.
- Net mortgage lending rose by £3.3 billion in the month; net consumer credit lending rose by £1.6 billion.
- In Q3 itself they wrote off £801 million (of which £584 million was credit card debt) amounting to a daily write-off of £8.7 million.
Citizens Advice Bureaux across England and Wales dealt with 612,209 new enquiries in the three months between July and September 2016.
Debt was the second largest advice category (behind Benefits) with 366,000 issues. This unchanged on the same period last year. Debt issues represented 26% of all problems dealt with over the period.
Based on quarterly figures up to the end of September 2016, Citizens Advice Bureaux in England and Wales are dealing with 4,022 debt problems every working day.
- CAB cite the loss of legal aid and falling trends in many individual debt types for the reduction in debt advice cases.
There were 24,251 individual insolvencies in England and Wales in Q3 2016. This is equivalent to 264 people a day or, one person every 5 minutes 28 seconds. This was up 6% on the previous quarter and up 19.3% on the same period a year ago.
Every day, on average, 42 people were made bankrupt, 71 Debt Relief Orders were granted, and 151 Individual Voluntary Arrangements were entered into.
In the 12 months ending Q3 2016, 1 in 515 adults (just under 0.19% of the adult population) became insolvent.
2,489 Consumer County Court Judgements (CCJs) were issued every day in the six months to Q3 2016. The average value of a Consumer CCJ in Q3 2016 was £1,642.
Everyday in the UK
The population of the UK grew by an estimated 1,286 people a day between 2014 and 2015.
On average, a UK household spends £3.44 a day on water, electricity and gas.
264 people a day are declared insolvent or bankrupt. This is equivalent to one person every 5 minutes 28 seconds.
40 million plastic card purchase transactions were made every day in July 2016, with a total value of £1.75 billion.
8.9m cash machine transactions were made every day in September with a value of £361m.
2,102 Consumer County Court Judgments (CCJs) are issued every day, with an average value of £2,030.
Citizens Advice Bureaux in England and Wales dealt with 4,022 new debt problems every day during the quarter ending June 2016.
25 properties are repossessed every day, or one every 58 minutes.
The number of mortgages with arrears of over 2.5% of the remaining balance fell by 39 a day.
The number of people unemployed for over 12 months fell by 400 per day July and September.
1,239 people a day reported they had become redundant between July and September.
Net lending to individuals in the UK increased by £159 million a day.
The Government debt grew by £160m a day during October 2016 (£1,852 per second).
Borrowers would repay £140m a day in interest over a year, based on September 2016 trends.
It costs an average of £30.23 per day to raise a child from birth to the age of 21.
48 mortgage possession claims and 34 mortgage possession orders are made every day.
370 landlord possession claims and 306 landlord possession orders are made every day.