UK banks and building societies wrote off £9.6 billion of loans to individuals in the last 12 months to end March 2010, according to Credit Action, an independent charity established in 1992 with the aim of helping people avoid getting into debt.
In first quarter of 2010 (January-March) they wrote off £2.13 billion (£1.25 billion of which was credit card debt). This amounts to a write-off of £23.35 million a day.
Total UK personal debt at the end of June 2010 stood at £1,457 billion. The twelve-month growth remained at 0.8 per cent. Individuals owe more than what the whole country produces in a year.
Total lending in June 2010 rose by £0.6 billion; secured lending increased by £0.7 billion in the month; consumer credit lending fell by £0.1 billion (total lending in Jan 2008 grew by £8.4 billion).
Total secured lending on dwellings –mortgages and personal loans - at the end of June 2010 stood at £1,239 billion. The twelve-month growth rate remained at 0.9 per cent.
Total consumer credit lending to individuals at the end of June 2010 was £218 billion. The annual growth rate of consumer credit fell by 0.1 per cent to - 0.1 per cent. Average household debt in the UK is £8,650 (excluding mortgages). This figure increases to £18,021 if the average is based on the number of households who actually have some form of unsecured loan.
Average household debt in the UK is £57,809 (including mortgages). If you add to this the March 2010 budget report figure for public sector net debt (PSND) expected in 2015-16 (excluding financial interventions) then this figure rises to £110,031 per household.
Average owed by every UK adult is £29,928 (including mortgages). This is 127 per cent of average earnings. Average outstanding mortgage for the 11.4 million households who currently have mortgages now stands at £108,819.
Britain's interest repayments on personal debt were £67.3 billion in the last 12 months. The average interest paid by each household on their total debt is approximately £2,669 each year.
According to PwC, the average household will need to spend approximately 15 per cent of net income purely to service the interest payments arising from this debt.
Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,478 per average UK adult at the end of June 2010.
Debt and Spending - Today in the UK…
• The average household debt will decrease by - £0.32 today (it grew by £11.11 a day in January 2008)
• 391 people everyday of the year will be declared insolvent or bankrupt. This is equivalent to one person every 51 seconds during the working day.
• Citizen Advice Bureaus dealt with 9,562 new debt problems every day in England and Wales
• The average cost of raising a child from birth to the age of 21 is £26 a day.
• 1,000 people are seeking some form of formal debt rescheduling every working day.
• 230,137 unsolicited telephone calls made to UK consumers daily by debt management and personal loan companies
• In the last 12 months consumers saved an average of £2.76 every day
• 2,000 Consumer County Court Judgments (CCJs) were issued every day in the first 3 months of 2009
• 107 properties were repossessed every day during Q1 2010
• Unemployment increased by 252 people every day during 12 months to end May 2010.
• 1,753 people reported they had become redundant every day during 3 months to end May 2010.
• 164 young people (18 - 24s) have become a NEET (not in education, employment or training) every day during the last 3 months.
• £354,500,000 is the amount that the Government Public Sector net debt (PSDN) will grow today (equivalent to £4,103 per second).
• £124,930,000 is the interest the Government has to pay each day on the UK’s net debt of £927 billion. This is estimated to rise to £182 million a day in 2015-16.
• 203 mortgage possession claims will be issued and 158 mortgage possession orders will be made today
• 363 landlord possession claims will be issued and 238 landlord possession orders will be made today.
• The UK population is projected to grow by 1,178 people a day over the next decade
• 21.9 million plastic card purchase transactions will be made today with a total value of £1.115 billion.
• 8.2 million cash withdrawals will be made today with a total value of £555 million
• The average car will cost £15.13 to run today
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