UK building societies and banks within the last 12 months ending Q1 2010 confirmed £9.6bn of loans written off to individuals. Within the first three months of 2010 £2.13billion was written off (credit card debt accounted for £1.25bn of this figure). These figures equate to £23.35m a day.

The total sum of UK personal debt as at end May 2010 was £1,460 billion. This represented a 0.9% growth over the 12 month period. Therefore individual consumers owe more in total than the country produces in one year. Total borrowing in May 2010 increased by £1.5 billion; an increase of £1.2 billion was accounted to secured lending.

At end May 2010 total secured borrowing on dwellings totalled £1,241 billion. This was a 12 month increase of 1.1%. Individual borrowing stood at £220 billion at the end of May. Consumer credit annual growth increased by 0.1% to 0.0%.

Excluding mortgages average UK household debt is £8,716. However this figure is increased to £18,159 if there is some form of unsecured borrowing within the home. Including mortgages average debt is £57,944. Average adult debt including mortgages is £30,000 which represents 126% of average earnings.

Of the 11.4 million households the average outstanding mortgage currently stands at £108,972. Interest repayments on on Britain's personal debt was £67.5bn in the preceeding 12months.

Average interest paid on their total debt per year is approximately £2,679. The average UK household will need to commit around 15% of net income to service the relevant interest payments.

At the end of May 2010 credit card borrowing along with unsecured loans, overdrafts, retail and motor finance deals rose to £4,513 per average UK adult.

Copyright © 2010 First Mortgage Trust