CreditAction Debt Statistics October 2012

October 26, 2012

UK Personal Debt

 

Outstanding personal debt stood at £1.412 trillion at the end of August 2012.

  • This is up from £1.407 trillion at the end of August 2011.
  • Individuals owed nearly as much as the entire country produced during the whole of 2011.

Outstanding secured (mortgage) lending stood at £1.256 trillion at the end of August 2012.

  • This is up from £1.242 trillion at the end of August 2011.

Outstanding unsecured (consumer credit) lending stood at £156 billion at the end of August 2012.

  • This is down from £165 billion at the end of August 2011.

Average household debt in the UK (excluding mortgages) was £5,949 in August.

  • This is down from a revised £5,971 in July.

Average household debt in the UK (including mortgages) was £53,706 in August.

  • This is down from a revised £53,736 in July.

The average amount owed per UK adult (including mortgages) was £28,754 in August.

  • This is down from a revised £28,770 in July, and was around 117% of average earnings.

Average consumer borrowing (including credit cards, motor and retail finance deals, overdrafts and unsecured loans) per UK adult was £3,185 in August. This is down from £3,197 in July.

The estimated average outstanding mortgage for the 11.2m households that carry mortgage debt stood at £111,793 in August.

Based on August 2012 trends, the UK’s total interest repayments on personal debt over a 12 month period would have been £60.1 billion.

  • This is equivalent to £164 million per day.
  • This means that UK households would have paid an average of £2,284 in annual interest repayments.

The Office for Budget Responsibility (OBR) predicts that total household debt will reach £2.044 trillion in Q1 2017.

  • This would mean that average household debt would reach £77,719 (assuming that the number of households in the UK remained the same between now and Q1 2017).

Net lending by UK Banks and Building Societies fell by £0.4 billion in total in August 2012. Net secured lending fell by £0.3 billion in the month.

  • Net consumer credit lending was broadly unchanged.

UK Banks and Building Societies wrote-off £5.3 billion of loans to individuals over the 4 quarters to Q2 2012.

  • In Q2 2012 itself they wrote-off £1.15 billion (of which £567 million was credit card debt) amounting to a daily write-off of £12.52m.

Every Day in the UK

Based on the latest available data, Credit Action estimates that every day in the UK:

  • 299 people are declared insolvent or bankrupt every day (based on Q2 2012 trends). This is equivalent to one person every 4 minutes 49 seconds.
  • 1,170 Consumer County Court Judgements (CCJs) are issued every day (based on Q2 2012 trends). The average value of a Consumer CCJ in Q2 2012 was £3,217.
  • Citizens Advice Bureaux in England and Wales dealt with 8,465 new debt problems every working day during the year ending June 2012.
  • It costs an average of £28.44 per day to raise a child from birth to the age of 21.
  • 93 properties are repossessed every day (based on Q2 2012 trends).
  • 145 new people a day became unemployed for over 12 months during the year ending July 2012.
  • 1,552 people a day reported they had become redundant between May and July 2012.
  • Public Sector Net Borrowing (excluding financial interventions) was £14.4bn in August, meaning that the Government borrowed an average of £464,516,129 per day during the month (equivalent to £5,376 per second).
  • 164 mortgage possession claims are issued and 127 mortgage possession orders are made every day
  • 396 landlord possession claims are issued and 279 landlord possession orders are made every day.
  • The UK population is growing by an estimated 1,342 people a day.
  • 28.0m plastic card purchase transactions were made every day in July 2012 with a total value of £1.357 billion.
  • 8.7m cash machine transactions were made every day in August with a total value of £349m.
  • The average car costs £18.33 per day to run.
  • It cost £70.10 to fill a 50 litre tank with unleaded petrol in September.

Figures taken from CreditAction Debt Statistics.

http://www.creditaction.org.uk/helpful-resources/debt-statistics.html