UK Debt: April 2023 statistics

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UK Debt: March 2023 statistics

March 30, 2023

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Cost of living crisis: How to reduce food waste

May 18, 2023

The Money Charity released their debt statistics for April 2023 and it is very clear that UK households are really battling with the cost of living crisis. Many are finding it difficult to keep up with bills each month and there does not seem to be any respite on the horizon.

Snapshot of UK debt April 2023

Inflation rate is at 10.1% which has reduced from the shock increase last month
There has been another decrease in the price of unleaded petrol during February 2023 by 0.5 pence per litre
Average credit card debt per household stood at £2,277 in January 2023 which is a slight decrease
The average total debt per household is £65,510 in February 2023
Total unsecured debt stands at £3,965 per adult in February 2023
6.1% increase in the average first time buyer house price to the year to January 2023

UK Personal Debt

Remember that you can view the statistics from last month here in order to compare with the April 2023 debt statistics.

304 people per day were declared bankrupt or insolvent in England and Wales from January to March. This equates to one person every 4 minutes and 44 seconds
Borrowers paid £162 million per day in interest in February 2023 which is another increase from last month
On average, a UK household spends £3.97 per day on water, electricity and gas
1,076 people a day reported they had become redundant between October and December
Government debt increased by £389 million per day in the three months to February 2023
The Citizens Advice Bureau dealt with 2,151 debt issues every day in the year to March 2023 which is a steady increase month on month

If you read the full statistic document, it will be made clear that UK households are facing rising costs from all angles. The cost of food and drink has soared compared to the prices from just a year ago. These increasing costs are fuelling the ongoing high inflation which is something that the government does not want when they have pledged to reduce it by the end of this year.

Food is becoming dangerously close to being classed as a luxury for some households. The Trussell Trust has reported that between April and September 2022, 1.3 million food packages were distributed which is a 52% increase in the same period in 2019.

Due to the high inflation figures, UK households are turning to credit in order to pay for their basic needs. 70% of consumers who use Buy Now Pay Later schemes, report that they are using this form of credit to pay for their food as a direct result of the cost of living crisis. Indeed, there are far more advertisements regarding BNPL schemes to pay for supermarket shops, takeaways and food deliveries because these companies are actively promoting them to an interested audience. However, The Money Charity has found that 24% of BNPL users are missing monthly repayments which illustrates a problem between affording basics and unsustainable debt for a number of people.

If the past year has had a negative impact on your financial situation, or you are facing increasing debt costs over the next few months, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.

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UK Debt: April 2023 statistics

UK Debt: March 2023 statistics

Cost of living crisis: How to reduce food waste

UK Debt: March 2023 statistics

Cost of living crisis: How to reduce food waste

Snapshot of UK debt April 2023

UK Personal Debt

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