Britons' debt load shows £3.4bn rise

The average amount owed by every UK adult is £30,188

By UK CreditCards.com

Britons average household debtNew statistics showing the extent of the nation's debts have been compiled by financial charity Credit Action.

According to the data, the total amount owed by Britons stood at £1.46tn at the end of July, a £3.4bn rise over the past 12 months.

This represents a dramatic slowdown in the rate of increase and reflects the tighter credit conditions imposed by banks due to the financial crisis and economic downturn of the past two years. By way of comparison, £116bn had been added to the national personal debt over the 12 months to January 2008.

Average unsecured debts, including money owed on personal loans and credit cards, stood at £9,226 per household in July 2009, according to Credit Action.

Including mortgages, the average amount owed by every UK adult stood at £30,188, equivalent to 130% of average annual earnings.

Meanwhile, over £65bn of interest repayments were found to have been made by Britons over the 12 months to July.

Statistics released by the Bank of England were used by Credit Action for its report.ADNFCR-2308-ID-19342625-ADNFCR

Published: 7 September 2009