Debt figures revealed by Credit Action

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Debt figures revealed by Credit Action

Tue 3rd Mar 2009

Total UK personal debt has begun to slow as more people look to save their pennies during the recession, new figures have suggested.

Research from Credit Action found total UK personal debt at the end of January 2009 was £1.46 trillion.

That figure represented an increase of £42 billion on the previous year, but was still significantly down on the £116 billion increase between January 2007 and 2008.

In a reflection of the slump in the housing sector, growth in secured lending on dwellings had fallen by 0.6 per cent at the end of January 2009, to 2.8 per cent.

The property market has been in freefall over the past year and as a result fewer people are looking to buy new properties.

Credit Action also reported that one in 33 people in work in the UK at the end of January were estimated to become unemployed during the course of 2009 as the recession hits.

The collapse of the banking sector at the end of 2008 precipitated a fall into recession in the UK, while many other countries around the world have also found themselves suffering negative growth.

That uncertainty has helped to rein in levels of borrowing among individuals, as many banks made it more difficult for people to borrow.

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