With the release of its July Debt Statistics today, Credit Action reveals how average household debt levels have changed over the course of the past year. This shows that since the start of 2012, a previously steady downward trend in average household debt (excluding mortgages) has been interrupted, while a more aggressive upward trend for average household debt (including mortgages) has established itself.
Until the turn of the year, average household debt (excluding mortgages) had been on a consistent downward trend, stretching all the way back to February 2010. However, in January 2012 this rose for the first time in nearly two years, and since then has followed a fluctuating (but largely upward) trend.
Meanwhile, average household debt (including mortgages) remained reasonably steady between May 2011 and December 2011. However, it increased dramatically in January, and has continued to grow significantly throughout the opening months of 2012.
Michelle Highman, CEO of Credit Action Says:” The trends highlighted by Credit Action’s Debt Statistics reflect the fact that households are having a pretty tough time of it at the moment. In particular, the periodic increases in average household debt suggest that people are under pressure and are having to fall back on credit in order to get through the month; clearly a source of concern. If you need to take on extra credit, make sure you shop around and find the best deal you can. And ensure you know and understand the terms and conditions involved. How much interest will you pay? What happens if you can’t pay back on time? Sometimes credit is essential, but make sure you fully understand your options, to make it work best for you and your family.”
Credit Action provides free information and resources for money management which are available online and in print. See www.creditaction.org.uk
Credit Action is the national money education charity, established in 1994. It works nationally promoting better thinking about money with a particular emphasis on those vulnerable to financial difficulties. Credit Action’s Debt Statistics are published monthly at www.creditaction.org.uk/helpful-resources/debt-statistics.html