UK’s Personal Debt Mountain Grew Again in May
June 27, 2017
The overall scale of personal debts held by UK consumers were growing at an annualised pace of 5.1 per cent during the month of May.
That figure reflects a slowdown in the pace of growth of Britain’s personal debts but still represents a sizable increase in the overall scale of arrears owed to creditors throughout the country.
Official data on the subject comes from the British Bankers Association (BBA), whose members include the leading mainstream money lenders in the UK.
“This month’s figures show that in the run up to the General Election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending,” said the BBA’s managing director for retail banking Eric Leenders.
Despite a cooling in the pace of growth within the personal loan, credit card and overdraft areas of the banking industry during May, activity in each of these sectors continued to increase.
Amounts owed on credit cards increased at an annualised pace of 5.5 per cent during May, compared with a figure of 6.3 per cent in April.
Meanwhile, the trend towards a slowing growth rate also saw the yearly expansion rate for personal loans and overdrafts fall from a pace of 6.3 per cent to 4.8 per cent between April and May.
Consumers throughout the UK are facing a squeeze on their personal finances in part as the result of recent increases in inflation, the headline figure for which was recently recorded as being at 2.7 per cent.
There are concerns in some quarters that high inflation may lead the Bank of England to increase its base level of interest rates and add considerably to the pressures on the finances of indebted consumers and businesses nationwide.
According to the BBA, the scale of deposits added to personal savings accounts grew at a pace of 2.6 per cent in the year to May, which is the slowest pace recorded since December 2011.
The association has said that rising costs are affecting households across the country and limiting their ability to set money aside on a regular basis.
If you live anywhere in Scotland and are struggling to cope with your personal debts then Scotland Debt Solutions can help. You can contact any of our offices directly to arrange a free and confidential consultation.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]