Personal Debt in the UK

Are you feeling the pinch from debt repayments each month, don’t worry, you are not alone. Reports out show that the personal debt level is increasing for many Brits.

By the end of May 2019, £1,640 billion was owed by people living in the UK. The year before it was £1,592 billion, meaning that as a whole, the UK’s debt grew by almost £50 billion in a single year. This makes the average amount of debt for each adult living in the UK increased by more than £900.

Debt doesn’t have to be a bad thing; it helps spread the cost of large items and gives you extra protection when purchasing products and services over £100. It helps those lucky enough to get on the property ladder with the aid of mortgage debt and keeps the country moving with millions of car loans, leases and PCP deals available.

Most of the people who seek debt help have been managing with all their commitments until they encounter an unexpected bill that brings them above their monthly commitments such as an urgent house repair, a decrease in income such as reduced hours, unemployment or redundancy or an illness or injury.

Some areas of the country appear to be particularly badly off, for example, London. Mainly due to the higher living costs that come with living there, but whatever the reason, according to some debt management charities, over half a million Londoners are struggling with their debt. Scotland too is facing issues, with more and more people looking for help with their problem debt from charities and specialist debt advisors. Counting mortgages, the average debt per household in the UK was nearly £60,000.

Did you know:

  • In the last 3 months up to June 2019, UK banks excluding RBS and the Bank of England, lent on average 5.98 billion each month to consumers.
  • Including mortgages, the average total debt in the UK is £86,388 and the average credit card debt is £2,653 per person.
  • It would take almost 27 years to pay off the average credit card debt of £2,653 making only the minimum payments each month.
  • The Money Charity recently published that the average real time salary has declined by 5% since the highest of the last financial crash in February 2008.
  • The average debt per individual in the UK is on average 111% more than the average salary.
  • As a nation, consumer is paying £138 million on interest a day, that’s £50,425 million a year based on 2019’d borrowing figures.
  • In the first three months of 2019 alone, banks wrote off £1.260 billion of debt. £432 million of that was credit card debt alone.

If you would like to find out more on how we can help with debt, then give us a call on – 0161 200 1139. Our advisors can help you out with tips and advice on how to handle your debt repayments. If however you are struggling to manage your debt repayments, our advisors are on hand to discuss all of your options.

Further reading

Reclaim Your Financial Freedom

Get debt help View More Blogs