UK Personal Debt
People in the UK owed £1,681 billion at the end of July 2020.
This is up by £28.4 billion from £1,652 billion at the end of July 2019, an extra £539 per UK adult over the year.
The average total debt per household, including mortgages, was £60,403.
Per adult this was £31,907, around 114% of average earnings. This is up from a revised £31,841 a month earlier.
Based on July 2020 trends, the UK’s total interest payments on personal debt over a 12-month period would have been £45,939 million, an average of £126 million per day.
The average annual interest per household would have been £1,651 and per person £872, 3.1% 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 July 2020, outstanding consumer credit lending was £207.9 billion, increasing by £0.81 billion on the revised total for the previous month.
Within the total, outstanding credit card debt came to £62.3 billion, a decrease of 13.9% in the year to July 2020. Credit card debt averaged £2,238 per household and £1,182 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 £3.485 billion in July 2020 or £112 million a day over revised figures for June 2020.
Net mortgage lending rose by £2.67 billion in the month, while net consumer credit lending rose by £0.811 billion.
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 £3.93 a day on water, electricity and gas.
239 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 2 seconds.
In Northern Ireland, there were 6 insolvencies per day and in Scotland 17 insolvencies per day.
Citizens Advice Bureaux in England and Wales dealt with 2,124 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 284 per day in the year to July 2020.
1,696 people a day reported they had become redundant in May to July 2020.
Net lending to individuals and housing associations in the UK grew by £112 million a day in July 2020.
Government debt increased by £582 million a day in the year to August 2020.
Borrowers paid £126 million a day in interest in July 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.