Average household debt in the UK rose slightly in June, according to the latest figures from Credit Action.
It stood at £54,067 (including mortgages) – up from a revised £54,034 in May – revealing people are still struggling to keep on top of their finances, with the situation slowly getting worse.
Borrowing also saw a rise during the month, with the average amount increasing slightly from a revised £3,207 in May to £3,211 in June. Unfortunately, this confirms individuals are still finding it tough to get out of their overdrafts and pay off lingering credit card debt as they struggle to find the money each month to make ends meet.
However, there is evidence people are being more careful with their plastic, as the figures revealed a decrease in card purchases in June, with 28.8 transactions made every day, which is less than the 29.4 million a day last month. This meant the average daily spend on credit cards dropped from £1.455 billion to £1.421 billion, which is a step in the right direction.
Outstanding personal debt stood at £1.425 trillion at the end of June, which is slightly more than what was reported at the end of May. Personal debt is beginning to stabilise, but people are clearly having a hard time finding the money they owe.
According to Credit Action, 282 individuals are being declared insolvent or bankrupt every day, which is more than the 274 last month. This is the equivalent of one person every five minutes and seven seconds and is a major worry.
As individuals continue to struggle, many are taking up debt consolidation loans in order to manage their money more effectively.
The economy is starting to show signs of improvement, with more people finding work and this can only be a good thing for those in financial difficulty.
Michelle Highman, chief executive of Credit Action, said: “It is certainly positive news that we are starting to see more people in the UK get back into work, and encouraging to see that young people are really driving these figures.”