UK debt 'up to £1.46tr'

05/05/2009

New figures from Credit Action show that the UK's total personal debt mountain is now worth almost £1.46 trillion.

The report shows the amount of money owed on mortgages, cards and loans for the end of March 2009.

According to the charity, the rate at which these debts are being built up is slowing.

Credit Action said that the size of the debt mountain had grown by £28 billion over the last 12 months.

However, over the 12 months to January 2008, this rate of increase hit £116 billion.

There are many contributing factors to this slowdown - including the increased difficulty faced by consumers wanting to get a card or loan on the high street due to the credit crunch.

Recession conditions could also have made many less willing to borrow.

Kevin Still, EuroDebt director, commented: "It is encouraging that for the last quarter that the average level of unsecured debt for those consumers actually using credit has gradually come down. There is evidence that consumers are trying to reduce their debt burden and some have taken advantage of reduced mortgage interest rates to re-direct disposable income.

"Unfortunately for those in an unmanageable debt position, EuroDebt's evidence is that debt balances are still going up for new clients in the last quarter."

The typical level of unsecured debt is £21,580 based on the number of households who actually have some form of unsecured loan.

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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