The Money Statistics October 2020

28.1% Proportion of household income saved in April to June 2020, influenced by Covid-19 lockdown and furlough

-13.8% Change in outstanding credit card balances in year to August 2020

£2,241 Average credit card debt per household in August 2020

£60,526 Average total debt per UK household in August 2020

£3,946 Total unsecured debt per UK adult, August 2020

12.8 million Number of households before pandemic with either no, or less than £1,500, in savings

2.1% Increase in average first-time buyer house price in the year to August 2020

6 years Time to save for a first-time buyer house deposit, saving at the average rate out of average UK income (at April to June 2020 rate of household saving)

UK Personal Debt

People in the UK owed £1,684 billion at the end of August 2020.

This is up by £26.2 billion from £1,658 billion at the end of August 2019, an extra £498 per UK adult over the year.

The average total debt per household, including mortgages, was £60,526.

Per adult this was £31,972, around 111.5% of average earnings. This is up from a revised £31,914 a month earlier.

Based on August 2020 trends, the UK’s total interest payments on personal debt over a 12-month period would have been £45,562 million, an average of £124 million per day.

The average annual interest per household would have been £1,638 and per person £8653.02% of average earnings.

According to the Office for Budget Responsibility’s March 2020 forecast, household debt of all types is forecast to rise from £2.068 trillion in 2019-20 to £2.425 trillion in 2023-24.

This would make the average household debt £86,388 (assuming household numbers track ONS population projections.) This forecast is pre-Covid-19.

At the end of August 2020, outstanding consumer credit lending was £207.8 billion, falling by £0.96 billion on the revised total for the previous month.

Within the total, outstanding credit card debt came to £62.3 billion, a decrease of 13.8% in the year to August 2020. Credit card debt averaged £2,241 per household and £1,184 per adult.

A credit card on the average interest would take 25 years and 5 months to repay, making only the legal minimum repayments each month.

The minimum repayment in the first month would be £58 but would reduce each month. If £58 were paid every month, the debt would be cleared in around 5 years and 2 months.

Total net lending to individuals and housing associations by UK banks and building societies rose by £3.082 billion in August 2020 or £99.4 million a day over revised figures for July 2020.

Net mortgage lending rose by £3.18 billion in the month, while net consumer credit lending fell by £96 million.

In Q2 2020 lenders wrote off £851 million (of which £358 million was credit card debt, amounting to a daily write-off of £3.9 million.)

Everyday in the UK

The population of the UK grew by an estimated 990 people a day between 2018 and 2019.

On average, a UK household spends £4.16 a day on water, electricity and gas.

230 people a day were declared insolvent or bankrupt in England or Wales in June to August 2020. This was equivalent to one person every 6 minutes and 16 seconds.

In Northern Ireland, there were 4.8 insolvencies per day and in Scotland 21.5 insolvencies per day.

Citizens Advice Bureaux in England and Wales dealt with 2,033 debt issues every day in the year to July 2020.

1 property was repossessed every day in April to June 2020 in the UK, or one every 24 hours and 15 minutes.

The number of UK mortgages with arrears of over 2.5% of the remaining balance fell by 7 a day.

The number of people unemployed in the UK grew by 1,500 per day in the three months to August 2020.

2,467 people a day reported they had become redundant in June to August 2020.

Net lending to individuals and housing associations in the UK grew by £99.4 million a day in August 2020.

Government debt increased by £624 million a day in the year to August 2020.

Borrowers paid £124 million a day in interest in August 2020.

It costs an average of £22.92 per day for a couple to raise a child from birth to the age of 18.

For a lone parent family, the cost of raising a child comes to £28.16 per day.

2 mortgage possession claims and 2 mortgage possession orders were made every day in England and Wales in April to June 2020.

33 landlord possession claims and 7 landlord possession orders were made every day.