Debt charity Credit Action has revealed that the average UK household with personal loan debts owes an average of £20,000. The new figures have been released as part of a study by the charity, finding that unsecured loan debts averaged £18,324 among households with personal loans debts at the end of March 2010. Taking into account those households with no personal loan debt, the average personal loan debt in the UK stands at £8,796 per household. That figure was significantly higher when mortgages were accounted for, taking the average level of debt to £57,950 per household.
These households are also paying back an average of £2,692 in interest alone on unsecured borrowings such as personal loans, credit cards, overdrafts and finance deals . The study suggests that consumer credit lending to individuals rose by 0.4 per cent in the 12 months leading up to the end of March, taking the total amount borrowed nationwide to £222 billion. Overall, the UK’s personal debt levels amount to £1,460 billion – more than the UK economy produces each year according to Credit Action. Furthermore, the findings come at a time when banks and lenders are being criticised for an availability of credit to both individuals and businesses.





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