Household debt increases 'for seventh month in row'

Rising levels of UK household debt were recorded for the seventh month in a row in October this year - the longest uninterrupted period in the history of the Markit Household Finance Index™ (HFI™).

The survey, which is intended to accurately predict changing consumer behaviour, looks at current household finances compared with the previous month, and ahead to a year's time from now. The latest data was recorded between 12-17 October 2011.

Figures revealed that only people in the highest income group - that is, those earning over £58,000 per year - saw an overall fall in debt levels. People working in the public sector reported an increase in debt during the same period.

Furthermore, over three times as many people (16%) reported an increase in their 'need for unsecured credit' as saw a reduction - with the sharpest rise in demand for unsecured borrowing found in the 'middle income band' (£23,000-£34,500).

Looking to the future, over half of all respondents (54%) 'expect their finances to worsen' in the next 12 months, and only 22% of those surveyed expect an improvement in the year ahead.