The Money Charity: Total debt rises £60.1bn

People in the UK owed £1,749.9bn at the end of October 2021, up by £60.1bn from £1,689.8bn since the end of October 2020, according to figures released by The Money Charity.

This represents an extra £1,136 per UK adult over the year.

The average total debt per household, including mortgages, was £62,965, and per adult was £33,086, around 108.3% of average earnings. This is up from the revised £33,073 a month earlier.

Mortgages accounted for £1,553.5bn of UK debt, amounting to £55,899 per household, or £29,373 per individual adult.

The UK’s total interest payments on personal debt over a 12-month period would have been £44,445m , an average of £122m per day.

The average annual interest per household would have been £1,599 and per person £840, 2.75% of average earnings.

According to the Office for Budget Responsibility’s (OBR) October 2021 forecast, household debt of all types has been forecast to rise from £2,004bn in 2020 to £2,363bn in 2025.

This would make the average total household debt £82,957.

Total net lending to individuals and housing associations by UK banks and building societies grew by £708m in October 2021, or £22.8m a day over revised figures for September 2021.

Net mortgage lending rose by £2.51bn in the month, while net consumer credit lending fell by £1.81bn.

The Money Charity data also found that there were 28,792 individual insolvencies in England and Wales in August to October 2021, an increase of 11.4% from 25,813 for the same period in 2020.

This was equivalent to 313 people a day or one person every four minutes and 37 seconds.

Written by: Houseladder