Upward trend continues for household debt figures

More figures on household finances suggest that families who had been gradually reducing their debts are being forced to borrow for everyday household expenses. 

Debt charity Credit Action’s July statistics show that, up to the end of May 2012, a downward trend in average household debt (excluding mortgages) has reversed.

In addition, average household debt figures (including mortgages), which remained reasonably steady last year, increased sharply in January and have continued to grow this year.

These figures are set against the background of the latest Bank of England statistics, which show that new unsecured borrowing outstripped repayments by £732m during May, higher than the average of the past six months of £403m. This was driven by increased borrowing through loans and overdrafts. Credit card borrowing increased by just £70m in May.

For more information, go to: http://www.creditaction.org.uk/policy-research/press-room/credit-actions-july-debt-statistics-reveal-household-debt-continues-to-rise-throughout-2012.html