News and Info from Deeside, Flintshire, North Wales

Debt to income ratio improves dramatically

NOTE: This content is old - Published: Thursday, Jul 4th, 2013.

Today financial capability charity Credit Action releases its Debt Statistics, giving an overview of the financial situation in the UK.

The latest data shows that average debt levels rose in May across both unsecured and secured lending.

However, the ability of UK citizens to service their debts improved significantly due to the large increase in average wages seen in April.

Latest figures show average weekly earnings in April reached £484 – a rise of 3.3% on the April 2012 figure.

The latest figures include:

  • £54,024: average household debt (including mortgages) in May, up from £54,002 in April
  • £5,978: average household debt (excluding mortgages) in May, up from £5,966 in April
  • £164 million of interest was paid every day on personal debt in May
  • £1.455 billion: daily value of all plastic card purchases in April
  • 1,545 people were made redundant every day between February and April
  • 898,000 people had been unemployed for over a year between February and April
  • Every 5 minutes 15 seconds someone was declared bankrupt or insolvent during Q1 2013
  • Every 16 minutes 26 seconds a property was repossessed during Q1 2013
  • It cost £67.30 to fill a 50-litre tank with unleaded petrol in June
  • The Government borrowed an estimated £3,286 every second during May

You can get the full picture at www.creditaction.org.uk/debt-stats

Michelle Highman, Chief Executive of Credit Action, comments: “Average weekly earnings hovered around the £470 level for most of the last 12 months and it is a long time since we have seen such a significant upturn in wages.

Whilst we remain concerned about rising debt levels and the cost of essential goods, at least there is finally some good news for consumers.

We would sound one note of caution in that bonus payments contributed a large proportion of the wage rise and therefore may not be maintained.”

“Credit Action has a range of free tools and resources to help you get on top of your money (www.creditaction.org.uk). If at any stage you feel that your debt is becoming a problem contact a free debt advice agency such as StepChange Debt Charity (0800 138 1111).”

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