The total UK personal debt exceeded £1 ¼ trillion and at the end of September 2006, with the growth rate increasing to 10.3% for the previous 12 months which equates to an increase of £109bn.
These startling facts add up to Britain’s personal debt increasing by £1m every four minutes.
Total secured lending on homes has exceeded £1 trillion, at the end of September 2006 it stood at £1045.7bn. This has increased 11.2% in the last 12 months.
Total consumer credit lending to individuals in September 2006 was £212.0bn, increasing 6.3% in the last 12 months.
Average household debt in the UK is £50,918 including mortgages, while the average owed by every UK adult is £26,747. Average interest paid by each household on these debts is approximately £3,204 each year.
A recent survey shows that some 770,000 people throughout Great Britain, with a mortgage have missed one or more mortgage payments in the last 12 months.
The survey showed that younger people are more likely to have missed a mortgage payment, with 13% of 21-24 year-olds surveyed said they had missed one or more mortgage payments last year. This suggests that some people who are new to homeownership may be getting straight into difficulties.
A recent report from Datamonitor reveals that the UK is responsible for a third of all unsecured debt in Western Europe and that the average UK consumer owes over twice as much as the average western European owes.
One person is falling victim to insolvency every minute of the working day – 26,021 people became insolvent between April to June 2006 which is a 66% increase on the same quarter last year. The number of people becoming insolvent in 2006 is likely to exceed 100,000.