Charity detects easing in personal debts increase

03/03/2009

Levels of personal debt are increasing at a less speedy rate than a year ago, figures from charity Credit Action show.

According to the data, total personal debt in the UK rose by £42 billion over the 12 months to January to hit £1.46 trillion.

This is a smaller rise than measured over previous years - and signals that the credit crunch is leading people to borrow and spend less.

As of January 2009, the nation's personal debt total was rising by £1 million every 40 minutes.

In January 2008, it rose by that amount every five minutes.

The typical household was found to have debts of £59,730 including mortgages and £9,550 without.

Kevin Still, EuroDebt director, commented: "Credit Action's figures show a small rise in the average level of unsecured debt for those consumers that use credit, this has risen from £21,051 quoted in March 2008 to £21,750 in the same reporting period this year. The CAB are now dealing with nearly ten per centmore new debt problems per day than at the same time last year."

He added: EuroDebt has seen a marked rise in the average value of debt that clients are coming to us with. Whilst borrowing has not risen markedly, the levels of unsecured household debt are rising and the requests for debt advice continue to increase. Whilst the overall level of interest paid has reduced on such a massive level of secured and unsecured borrowing, it will be interesting to see the impact of double digit rises in credit card APRs by some providers with credit card debt standing at £53 billion in January 2009."

Tags; Housing Debt and Bills, Recent Graduate Debt, Retirement Money Problems, Credit Card Lifestyle,

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