The write-off rate on consumer lending by UK monetary financial institutions to individuals increased further in 2010 Q2 to 7.4%, according to latest UK debt statistics from Credit Action.
UK banks and building societies wrote off £10.9 billion of loans to individuals in the last 12 months to end Q2 2010. In Q2 2010 they wrote off £3.47 billion (£2.14 billion of that was credit card debt). This amounts to a write-off of £38.06 million a day.
Total UK personal debt at the end of August 2010 stood at £1,428 billion. The 12-month growth increased by 0.9%. Individuals owe more than what the whole country produces in a year.
Total lending in August 2010 rose by £1.5 billion secured lending increased by £1.7 billion in the month consumer credit lending decreased by – £0.1 billion (total lending in Jan 2008 grew by £8.4 billion).
Total secured lending on dwellings at the end of August 2010 stood at £1,240 billion. The 12-month growth rate remained at 1.0%. Total consumer credit lending to individuals at the end of August 2010 was £216 billion. The annual growth rate of consumer credit was unchanged at 0.2%.
Average household debt in the UK is around £8,590 (excluding mortgages). This figure increases to £17,896 if the average is based on the number of households who actually have some form of unsecured loan. Average household debt in the UK is around £56,690 (including mortgages).
