UK debt mountain 'approaches £1.5tr'

01/04/2009

The total personal debt held in the UK had risen to £1.46 trillion at the end of February 2009, Credit Action has said.

According to the debt charity, this is an annual rise of £34 billon over the end of February 2008.

However, Credit Action added that this represented a significant slowdown in the rise of the debt mountain - which had increased by £116 billion over the year to January 2008.

The likely cause of this moderation in borrowing is the credit crunch and general economic downturn which has afflicted the UK over recent months.

Difficulties with securing credit, including affordable mortgage loans, personal loans and credit cards, have come with the crisis.

Credit Action's report pointed out that daily interest payments totalled £199 million - and that one Briton was declared bankrupt every four and a half minutes.

The average household unsecured debt in the UK is £21,640 based on the number of households who actually have some form of unsecured loan. ADNFCR-1819-ID-19102833-ADNFCR