The monthly data reveals a significant amount of debt across the UK, with individuals currently owing almost the country’s entire output between Q2 2010 and Q1 2011.
Every day an average of 331 people are declared bankrupt or insolvent, according to the report. In addition, the Citizens Advice Bureau deals with 9,072 new problems daily, whilst every 4.36 minutes a new consumer is declared bankrupt or insolvent.
The insolvency solutions exclude informal debt solutions such as a debt management plan, so the debt situation is far worse than previously expected. Personal debt problems can range from general money advice through to Bankruptcy advice.
The Office for Budget Responsibility (OBR) has predicted that household debt will reach £2,126 billion by the end of 2015, increasing the average debt per household to £81,769, Credit Action reveals.
Furthermore, the UK population is projected to grow by 1,205 people a day over the next decade which is likely to further impact the debt industry. Average consumer borrowing via overdrafts, credit cards, motor and retail finance deals and unsecured personal loans has increased to £4,268 per UK adult at the end of June 2011.
