The value of outstanding unsecured loans in the UK has been shown to be continuing to rise.
According to Credit Action, personal debt is growing by 4.1 per cent, now standing at £1,456 billion. And when mortgages are not considered, the average household debt is now £9,600. However, the charity found that this figure rises to nearly £22,000 when only those with some form of unsecured loan are considered.
Rising debt levels were shown to have led to 124 homes being repossessed every day in the third quarter of last year, with the total amount owed by UK consumers now growing by £154 million every day.
Darren Cook, spokesman for Moneyfacts.co.uk, recently observed that a lack of credit has led to a change in spending habits.
He explained that consumers no longer believe they will be able to consolidate debt with unsecured loans and are therefore reluctant to spend on credit.
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