British individual debt remains high

As the economic instability continues to bite, one person is declared insolvent or bankrupt every 60 seconds during each working day in the UK.

This is the conclusion from money education charity Consumer Action, which has released its January Debt Statistics ñ revealing the current state of financial affairs for a number of Brits.

Figures released in Credit Actionís January Debt Statistics have shown that 331 people file for insolvency or bankruptcy every day in the UK.

It was also found that outstanding personal debt in the UK reached a total of £1.451 trillion at the end of November 2011, with £173 million being paid daily in interest alone during that month.

Based on Novemberís figures, the UK’s total interest repayments on personal debt over a 12 month period would be £63.1 billion.

ìOur ëday in the life’ statistics show the sheer scale of the financial problems faced in the UK and illustrate the numerous ways in which we are all vulnerable to the economic downturn,î said Michelle Highman, CEO of Credit Action.

Debt advice groups and organisations continued to see a rise in cases. The Citizens Advice Bureau in England and Wales dealt with 8,652 new debt problems every working day during the year leading up to September 2011.

ìIf you do find yourself in a situation where your debts are already out of control, make sure you seek free debt advice from services such as the CAB or the Consumer Credit Counselling Service,î added Ms Highman.

The research also revealed the average amount owed by households in the UK. The report showed that in November 2011 household debt stood at £55,816, including mortgages.

On top of this, an average of 101 properties are repossessed every day ñ the equivalent to one every 14 minutes.
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