The latest debt statistics from Credit Action

Credit Action has released debt statistics for August, and although outstanding personal debt is up, it’s not all bad news as unemployment figures are down.

The August installment of debt stats include:

  • £5,986: average household debt (excluding mortgages) in June, up from £5,978 in May
  • £164 million of interest was paid every day on personal debt in June
  • £1.421 billion: daily value of all plastic card purchases in May
  • 915,000 people had been unemployed for over a year between March and May
  • Every 5 minutes 7 seconds someone was declared bankrupt or insolvent during Q2 2013
  • £1.425 trillion was the value of outstanding personal debt at the end of June, up from the same period last year

For more details, go to: www.creditaction.org.uk

Debt levels rise…but the debt to income ratio improves!

Protecting a good investment and making money conceptAccording to recent figures from Credit Action, household debt increased in May 2013, compared to the previous month, but the debt to income ratio has improved drastically!

Increases in wages from April to May means that, although debt levels rose, the average UK citizen would have been in a better position to manage their debt.

The stats:

  • £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

If you know of anyone who might want some advice with regards to debt, there is lots of information to be found on our Turn Debt Around website – have a look at the Debt solutions page, and the Important information page.

Alternatively, they can also call us on 0131 777 3039 for an impartial, no strings chat.

For the full Credit Action story, click here.

Household debt on the rise!

Household debt

Debt that’s not dealt with can lead to repossession

National money education charity, Credit Action, has reported that the average household debt in the UK is on the rise, as the rate of repossessions goes up.

The fact that more repossessions are taking place implies that more households are struggling to make ends meet. If you find yourself in debt, it’s important not to ignore the problem, but to take action straight away.

Turn Debt Around can help with impartial, no strings debt advice, and we can also facilitate a range of debt solutions.

For more information, have a look at the ‘Debt solutions’ page on our website, or call us for an initial chat on 0131 777 3039.

Source: Credit Action

Stuggling to make a budget? Here’s how it’s done!

Pound coins

Could you save cash with a budget?

Whatever your financial situation, making – and sticking to – a budget can be a powerful tool to help you reach and maintain your financial targets.

If you are in debt and need to cut costs, or if you are trying to save up for something important, like your first flat or the holiday of a lifetime, a budget can significantly increase your chances of getting there.

It may seem obvious, but putting your outgoings and income in black and white (or red, as the case may be) on a spreadsheet can be extremely helpful in realising where you might be able to make savings, or how you could shift expenses around to cut down your spend.

If you’re unsure of where to start, check out this ‘How To Make A Budget’ video by Credit Action.

Some sobering UK personal debt statistics…not exactly a feelgood read!

We just received an email update from Creditaction.org.uk, the UK’s financial capability charity, full of delightful (not) debt statistics.

In all honesty, these most recent figures don’t make for very uplifting reading, mostly – but it’s important not to brush debt under the carpet.

As such, we have added some nuggets of insight from the Credit Action emailer below, for you to peruse at your leisure – if nothing else, it may help put your own finances in perspective.

Most importantly though – and especially if the below leaves you feeling all clammy with anxiety; remember that there is help to be had for those struggling with debt!

  • Outstanding personal debt stood at £1.422 trillion at the end of December 2012.
  • This is up from £1.406 trillion at the end of December 2011. At the end of December 2012, individuals owed nearly as much as the entire country produced during the whole of 2011.
  • Outstanding secured (mortgage) lending stood at £1.265 trillion at the end of December 2012. This is up from £1.245 trillion at the end of December 2011.
  • Outstanding unsecured (consumer credit) lending stood at £157 billion at the end of December 2012. This is down from £160 billion at the end of December 2011.
  • Average household debt in the UK (excluding mortgages) was £5,946 in December. This is up from a revised £5,914 in November.
  • Average household debt in the UK (including mortgages) was £53,947 in December. This is up from a revised £53,885 in November.

At Turn Debt Around we can offer impartial, personal debt advice that takes into account our customers’ individual circumstances.

Oh, and the advice we give is free – people who contact us are under no obligation to go ahead with our recommended solutions. If they do choose to proceed, we will explain any fees that may be applied, which will usually be incorporated into the debt solution payment plan.

If you or anyone you know would like to have a chat – give us a ring on: 0131 777 3039

Source: Creditaction.org.uk

Debt-relief

Credit cards – an ‘easy option’ perhaps, but what are the consequences?

Financial capability charity Credit Action has warned consumers not to get caught in the ‘credit card trap’ over the festive season and going into the new year.

With 27.7 million plastic card purchase transactions made daily in the UK, at a total monetary value of £1.362 billion*, Credit Action is urging shoppers to be mindful of how they use their cards and keep track of what they spend.

Michelle Highman, CEO of Credit Action says: “It’s a lot easier to lose track of spending when it’s done on any sort of card. But credit cards in particular can encourage us to think that we’re not spending real money. Even the most money conscious of us splash out during the Christmas season and it’s easy to say ‘I’ll worry about it later’, but this approach has consequences, especially when using credit to finance Christmas. Credit isn’t free money and you will need to pay it back later. Worse still, if it isn’t possible to pay off your credit card when you get the bill, the true cost of Christmas will continue to go up and up each month that you’re paying it down.”

If you are struggling with credit card debt (or any other debt), contact our friendly Turn Debt Around team for an impartial, no strings chat, to see if we can help you get on top of your finances.

Call us now on 0131 777 3039, or visit our website: www.turndebtaround.com

*Article and statistics source: creditaction.org.uk

Credit-cards