Do You Live in a UK Debt Hotspot?

July 18, 2014

Luke-Notley small (Custom)The British Bankers’ Association (BBA) has revealed the areas of the country with the highest average levels of personal debt, shaming the high-borrowing postcodes.

Using figures provided by Barclays, Lloyds Banking Group, HSBC, the Royal Bank of Scotland group, Santander, the Clydesdale and Yorkshire banks and Nationwide; the BBA determined which areas have taken out the highest amount of personal loans on a per-capita basis.

Postcodes in Southampton, Peterborough and Newcastle upon Tyne came out on top of the list with the highest levels of personal debt per capita. The Southampton post code of SO32 3, which includes areas such as Bishop’s Waltham, Corhampton, Droxford, Durley, Wickham and Eastleigh, secured the rather ominous crown of the area with the highest level of personal debt with an average of £1,880.

Just behind is the Peterborough postcode of PE7 0 with a per-capita personal debt of £1,869, followed by NE13 9 in Newcastle with a personal debt average of £1,550.

Ranking Area Postcode Personal Loan Debt Per-Capita
1 Southampton SO32 3 £1,880
2 Peterborough PE7 0 £1,869
3 Newcastle NE13 9 £1,550
4 East Central London EC1V 2 £1,440
5 Preston PR7 7 £1,386
6 Leeds LS17 0 £1,375
7 Milton Keynes MK42 6 £1,331
8 Galashiels TD12 4 £1,296
9 Western Central London WC1X 8 £1,291
10 Manchester M3 3 £1,259

These figures are likely to be even higher, with the research only covering the largest lenders which account for roughly 60% of the borrowed money in the UK.

The BBA, in partnership with the Council of Mortgage Lenders, also revealed that Britain currently has £902billion of outstanding mortgage debt, of which almost £323billion was held in London. The outstanding mortgage debt of just South West London alone is roughly the same as the entirety of Wales, weighing in at £29.7billion and £28.6billion respectively.

If you are struggling to make your debt repayments, whether you live in one of the UK debt hotspots or not, InControl can help you manage or consolidate these debts to ease the financial burden. Our team of skilled advisors can recommend the best course of action for you to work your way out of the red and into the black.