Credit Action Debt Statistics

New debt statistics have been released by creditaction.org.uk and the new stats are as follows;

• 331 people every day of the year will be declared insolvent or bankrupt. This is equivalent to 1 person every 60 seconds during a working day.

• Total UK personal debt at the end of June 2011 stood at £1,451bn. The twelve-month growth rate remained unchanged at 0.8%. Individuals currently owe nearly as much as the entire country produced between Q2 2010 to Q1 2011.

• Total lending in June 2011 rose by £0.4bn; secured lending decreased by £0.1bn in the month; consumer credit lending increased by £0.4bn (total lending in Jan 2008 grew by £8.4bn).

• Total secured lending on dwellings at the end of June 2011 stood at £1,241bn. The twelve-month growth rate remained unchanged at 0.7%.

• Total consumer credit lending to individuals at the end of June 2011 was£210bn. The annual growth rate of consumer credit increased 0.3 percentage points to 1.8%.

• UK banks and building societies wrote off £9.5bn of loans to individuals in the 4 quarters to end Q1 2011. In Q1 2011 they wrote off £1.89bn (£866m of that was credit card debt). This amounts to a write-off of £20.71m a day.

• Average household debt in the UK is ~ £8,064 (excluding mortgages). This figure increases to £15,507 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 ~ £55,803 (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 £106,418 per household.

Today in the UK

• 1,577 Consumer County Court Judgements (CCJs) were issued every day during Q1 2011 and the average judgement amount was £3,118.

• Citizen Advice Bureaux dealt with 9,072 new debt problems every working day in England and Wales during the year ending March 2011.

• The average cost of raising a child from birth to the age of 21 is £27.50 a day

• 100 properties were repossessed every day during Q1 2011

• 36 new people became unemployed for more than 12 months every day during the 12 months to end May 2011

• 1,578 people reported they had become redundant every day during 3 months to end May 2011

• £251,500,000 is the amount that the Government Public Sector Net Debt (PSDN), including financial interventions, will grow today (equivalent to £2,911 per second)

• £144,660,000 is the interest the Government has to pay each day on the UKs net debt of £2276.0bn (which includes financial interventions). This is estimated to rise to £182m a day in 2015-16

• 220 mortgage possession claims will be issued and 160 mortgage possession orders will be made today

• 382 landlord possession claims will be issued and 265 landlord possession orders will be made today

• The UK population is projected to grow by 1,205 people a day over the next decade

• 24.1m plastic card purchase transactions will be made today with a total value of £1.182bn.

• 7.3m cash withdrawals will be made today with a total value of £478m

• The average car will cost £16.08 to run today

• It costs £67.80 on average to fill a car with a 50 litre tank with unleaded petrol.

Protected Trust Deed Statistics

New figures were released today by the Accountant In Bankruptcy and have shown a decrease in the number of protected trust deeds granted in the previous quarter of 2010/2011.

The new statistics have shown a drop of 25% in trust deeds granted compared with the previous quarter. The fall in trust deeds being grant seems to be linked to the rise in certificate of sequestrations which was introduced in November 2010. Bankruptcy was also on the rise within the last quarter with 2,687 people being awarded bankruptcy through a range of different routes, these can be broken into;

2,173 Awarded from debt applications

445 Creditor Petitions to the court

68 Petitions by the trustee in a Trust Deed

There was also a rise in legally binding debt management solutions such as, D.A.S (Debt Arrangement Scheme) with 478 approved. This is up 9% on the previous quarter and 15% compared with the previous year.

The LILA debt solution has also decreased by 12% to 1,204 compared with 1,368 in the 3rd quarter of 2010/2011.

From the the chart below we can the the increase in sequestrations (bankruptcy) and the decrease of protected trust deeds. The new trust deeds statistics are the lowest in over 5 years and while sequestration may have increased from the previous quarter they are the second lowest figures in over 5 years.

 

Trust Deed Statistics

From this above chart we can see a decline in traditional sequestration (bankruptcy) since the new route to bankruptcy called LILA (Low Income Low Asset) was introduced. LILA is a route into bankruptcy however it is a simplified form for people who have limited income and little or no assets. This is the reason there was an increase in sequestration when LILA was introduced in the first quarter 1 of 2008/2009. It would appear that this continued decline in personal insolvency is good new for the economy as it will mean that people are beginning to be able to pay back what they owe. The unfortunate news is that there is still a long way to go before we will back back at the levels of 2006/2007. This is a good sign that things are getting better but it will probably take more before we are economically safe again.