Debts continue to increase in 2008
Figures from debt advice charity, Credit Action, show the total amount of personal debt in the UK continues to rise. At the end of January 2008, personal debt now stands at £1,412billion, a rise of 9.1%.
With the cost of living continuing to rise due to inflation and the latest budget, more people are seeking advice for debt problems.
Statistics have shown that personal debt has increased by £113billion over previously reported levels, and continues to grow by £200,000 every minute.
Lending in January increased by £8.4billion, of which £7.4billion was secured lending while unsecured consumer credit lending increased by £0.9billion.
Average personal debt levels in the UK are nearly £30,000 (including mortgages), with an average household debt of £56,000. Excluding mortgages, average household debt levels are £9,000, increasing to £21,000 when figures are based on households with unsecured loans.
Britons paid nearly £94billion in interest repayments in 2007, an increase of 13.2% over the previous year. Based on average debt levels, interest repayments have increased by £440 per household over the past year.
Despite increasing interest costs, the average level of consumer borrowing continues to increase, averaging £4,750 for every adult in the UK at the end of January.
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