Banks and building societies are writing off more personal loans and other forms of consumer lending, according to recent figures.
Statistics released by Credit Action reveal that there has been a 7.4 per cent increase in the write-off rate.
A total of £10.9 billion in loans have been written off in the 12 months to the end of the second quarter this year, while £3.47 billion was written off in the second quarter itself.
The average household debt in the UK presently stands at £8,590 but increases to £56,690 when mortgages are also taken into consideration.
Total personal debt, at £1,428 billion, is also higher than what the country produces as whole in a year, the report claimed.
The state of personal finances has highlighted the need for greater economic awareness with Wendy van den Hende, chief executive for the Personal Finance Education Group, suggesting that such knowledge should be imparted to students so that they are better equipped when they leave school. |
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