UK Debt: September 2022 statistics
September 30, 2022
What does the Autumn Statement mean for you?
November 18, 2022
Amidst the worsening financial landscape that is hitting the general population’s pockets, The Money Charity has released the debt statistics for October 2022.
Snapshot of UK debt October 2022
- Despite there being a fall in the inflation rate last month, it is back at 10.1%
- There has been a 8.2 pence per litre decrease in the price of unleaded petrol during September 2022
- Average credit card debt per household stood at £2,244 in August 2022 which is yet another monthly increase
- The average total debt per household is £65,346 which has risen from £65,151 in August 2022
- Total unsecured debt stands at £3,877 per adult in August 2022
- 13.5% increase in the average first time buyer house price to the year to August 2022
- It takes 22 years on average to save for a first time buyer house deposit, saving at the average rate out of the average UK income. This has fallen from last month’s statistic set at 26 years
UK Personal Debt
Remember that you can view the statistics from last month here in order to compare with the October 2022 debt statistics.
- 313 people per day were declared bankrupt or insolvent in England and Wales from July to September. This equates to one person every 4 minutes and 36 seconds
- Borrowers paid £135 million per day in interest in August 2022
- On average, a UK household spends £4.12 per day on water, electricity and gas which is a decrease from last month. We thought that this figure would have risen however expert analysis concludes that a reduction in this figure shows that consumers are cutting back on their energy usage in prospect of being landed with large energy bills. In this cae, the reduction actually shows a lowering of lifestyle quality
- 739 people per day were made redundant from June to August, which is a significant increase from 696 reported last month
- Government debt increased by £334 million per day in the three months to September 2022
- The Citizens Advice Bureau dealt with 2,058 debt issues every day in the year to September 2022
The financial crisis is playing out amongst other political dramas. Truss resigned, mostly due to the fallout from the mini budget. However before she resigned, she appointed a new Chancellor who reversed nearly everything that she had announced which seemed to placate the markets, yet the damage had been done and the UK population are now suffering the consequences.
Sunak is now Prime Minister and we are expecting the new budget around mid November so watch this space. Reports so far are warning of a tough couple of years ahead – on top of the already tough times that we are facing.
The Energy Price Guarantee has now been reneged on – well, it is only in place until April 2023 and we await further details on what will happen then, but this news has worried a lot of bill payers. Recent research has shown that nearly half of UK adults (45%) have found it difficult to keep on top of bills and credit repayments. This is up from 30% at the same time last year.
The cost of living crisis is affecting a large proportion of the population because it is affecting middle earners too. One of the reasons is the increasing price of food. Food banks are reporting more visits, schools are reporting that some pupils are hungry in class because they are skipping meals.
Between February and June, 1 in 4 adults described themselves as being financially vulnerable, which is where they would be unable to cope if they suffered a sudden financial shock.
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.
