Personal debt on the rise
Total personal debt in the UK is on the increase, with figures revealing strong growth in debt over the past year and into 2007.
Credit Action reports that overall consumer debt increased by 10.4 per cent in the year up to April 2007, currently standing at £1.325 trillion. In total, £1.1 trillion is represented by secured lending such as mortgages, marking an increase of 11.4 per cent compared to a year previous.
Meanwhile credit lending rose by 5.4 per cent to sit at £213 billion, according to Money High Street.
Per household, average debt is currently over £8,800 excluding mortgages, rising to £54,771 including mortgages. This demands some nine per cent of all take home pay, suggesting that debt is posing significant financial pressure for many households.
The Insolvency Service reports that more than 46 per cent of borrowers took out individual voluntary arrangements in the first three months of the year compared to the year before.
Government figures show that 15,356 people declared themselves bankrupt in the first quarter while 11,299 agreed an IVA during the period, according to QCK.
Source: thelondonstockexchange.co.uk
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