Personal Debt Levels Continue Rapid Rise
November 30, 2017
The overall scale of consumer debts owed by individuals throughout the UK are continuing to rise rapidly, according to the latest set of official lending figures from the Bank of England.
Many thousands of people across the country are struggling to manage their debts and the total scale of consumer borrowing continues to grow at a rate of close to 10 per cent on an annual basis.
The pace of consumer debt growth slowed during October but still increased at an annual rate of 9.6 per cent and by nearly £1.5 billion in cash terms.
The Bank of England has cited increasingly rapid growth of consumer debt as a clear problem for the UK economy and is likely to welcome the news that the pace of debt growth has at least cooled in recent weeks.
Nonetheless, money problems continue to mount for individuals and for households around the country as debt levels carry on rising and high inflation continues to take its toll.
The debt help charity StepChange responded to the Bank of England’s latest consumer borrowing figures by emphasising the point that an easing back of personal borrowing growth does not mean the UK’s issues with personal debt are over.
“Despite a slight slowdown, consumer credit continues to grow strongly, outpacing incomes,” said StepChange’s head of policy Peter Tutton in a statement.
“Regulators need to ensure consumer credit lending is responsible and affordable for households; and with the government now committed to introducing a ‘Breathing Space’ scheme to help people manage problem debt, it’s crucial to get it right and into existence as soon as possible.”
In response to the latest borrowing data, StepChange has also highlighted the worrying statistic that roughly nine million people in the UK are currently believed to be relying on credit to cover essential expenses.
According to the Bank of England, close to £205 billion is now owed to lenders by individual consumers across the country.
If you live anywhere in Scotland and you are struggling to get to grips with your debt problems then Scotland Debt Solutions can help. You can contact any of our four Scottish offices directly to arrange a FREE and confidential consultation.