Increase in personal loan debt

Many people in the UK had to reconsider their attitude to finances due to the recent recession. Still, although thousands of Brits reduced their exposure to debt and stopped being so dependent on loans, recent figures have shown that personal debt in the country is record high.

Credit Action has published the results of their new study, according to which the total amount of personal debt on loans and other credit in the UK, accumulated over the course of the first four months of the current year, constitutes a mind-boggling £1,460 billion, which exceeds the annual GDP of the UK.

It turns out that the average debt per person in the country is about £30,228, with home owner loans and mortgages taken into account, which is nearly 126% of the average earnings in the UK. Additionally, the average household debt amounts to about £57,915.

Not including mortgages, the average amount of debt per person in the UK is about £4,573. Curiously, about £186 million in interest is spent by consumers in the UK every day.

Fortunately, the rate of debt growth in the country is slowing, from £11.11 per day in the first month of 2008 to just 10p per day now.
 


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.