Debt Statistics for March - Personal Debt Up by £9 billion in a Month
Personal debt in the UK continues to rise, the latest statistics show, with borrowing rising by over £9 billion in March alone. Personal debt has risen from £1,421 billion to £1,430 billion, rising at a rate of roughly £1 million every five minutes. The average household in the UK now owes over £50,000 in secured and unsecured lending, and each individual adult on average owes over £30,000.
That debt continues to rise is unsurprising. Fewer sources of credit are now available, but there is still plenty of money that is there to be borrowed, and plenty of people who want or need to borrow it. But debt is getting more expensive every week – since the credit crunch hit, the cost of borrowing has risen considerably. Mortgages, credit cards and personal loans have all seen significant interest rate rises in the past few months, and the more that people borrow, the more the interest is going to pile up.
The rise in debt during March is not exceptional. It is simply the same steady increase that has been seen in recent months, and does not show that borrowing is either slowing down or spiralling out of control. But because borrowing is starting to cost much more than it did, if the increased interest rates starts to be felt, it could snowball considerably. £93 billion was paid in interest alone by consumers over the past twelve months – in the next year, with interest rates spiralling up, this figure could be much, much higher, unless consumers can manage their debts and avoid being caught out.
There is little to do but play the waiting game to see which way the statistics go next month, and the month after that, to see how the pattern develops over time and whether or not the UK’s debt mountain is likely to shrink or grow in the months ahead.
