Slight fall in average household debt in June

The average household debt at the start of June was £55,854, including mortgage debt, according to Credit Action - a fall of £16 on debt levels at the start of May.

Average household debt excluding mortgages stood at £8,121, a fall of £23 on the same point a month ago.

The monthly report, which details levels of debt in the UK, also found that 1,348 people are being made redundant daily and 850,000 people have been unemployed for more than 12 months.

Overall, £179 million pounds is paid in debt interest every day, the report added.

An expert at debt management company Gregory Pennington said: "It`s clear that debt remains a big problem for many people across the UK. The figures show a very slight fall in debt levels, which is very encouraging, but not significant enough to suggest a longer-term improvement may be on the horizon.

"Forthcoming base rate rises and growing household costs could leave even more people in a difficult financial position in the coming months, so we urge anyone concerned about their debts - or about their finances in general - to seek expert help."