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Let’s take a look at the January debt statistics which have been released by The Money Charity. You can sign up to have their monthly statistics report sent to your inbox by visiting their website.
Snapshot of UK debt January 2022
- Inflation is set at 5.4% – a rise from 5.1% last month
- There has been a 0.8% per litre decrease in the price of unleaded petrol in December 2021
- Average credit card debt per household stood at £2,118 in November 2021
- The average total debt per household is £63,122 in November 2021 which is another increase
- Total unsecured debt stands at £3,740 per adult in November 2021
- 9.1% increase in the average first time buyer house price to the year to November 2021
- It now takes 20 years on average to save for a first time buyer house deposit, saving at the average rate out of the average UK income
UK Personal Debt
Remember that you can view the statistics from December 2021 here in order to compare with the January 2022 debt statistics.
- 313 people per day were declared bankrupt or insolvent in England and Wales from August to October 2021. This equates to one person every 4 minutes and 37 seconds
- Borrowers paid £122 million per day in interest in November 2021
- Consumers lost £355.3 million to Authorised Push Payment scams during January to July 2021, according to Which?
- On average, a UK household spends £4.28 per day on water, electricity and gas which is a decrease from previous months, however this is expected to rise with the price cap increase next quarter
- 857 people per day were made redundant from September to November 2021
- 1,949 debt issues were dealt with daily by the Citizens Advice Bureau, with benefits, tax credits and debt being the reasons for needing advice
On the surface, there were a few positives in the statistics from the end of last year, however on further analysis of the statistics from previous few months, all is not what it seems.
Price rises and inflation are continuing to rise. The inflation figure (standing at a nearly 30 year high at 5.4%) and how it affects poorer communities has been called into question and is now being reviewed by the ONS. Borrowing and lending has risen, showing that households are now turning to credit in order to pay for living costs. This is further illustrated in the slowing of the decrease of the levels of credit card borrowing.
Increasing fuel prices have hit households hard during 2021. Prices have finally fallen however this is nominal.
Overall it seems like the UK is in for a challenging financial ride over the next couple of Winter months.
If the past year has had a negative impact on your financial situation, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.
