- Friday, 3 July 2009Britons are collectively £1.459 trillion in debt on credit cards, store cards, overdrafts and unsecured loans, according to Credit Action.
The average UK adult now has £4,860 in personal debt.
Including mortgages, this figure rises to £30,480 – the equivalent to 132 per cent of typical earnings.
Such statistics heighten the potential need for personal finance solutions in the future – such as
individual voluntary agreements – as people may not be able to cope with increased debt amidst a continuing recession.
The problem is best highlighted by the levels of interest the nation is having to pay. In the last 12 months, Britain's interest repayments on personal debt were £66.2 billion.
The average interest paid per household on their total debt amounts to £2,650 per year.
However, the pace at which the nation is accruing debt is beginning to slow, increasing by £1 million every 77 minutes in May compared to every five minutes in January of last year.
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