Personal debt grows to record levels

The UK`s debt problems increased further during October, with the total personal debt of consumers in the country growing to its highest-ever level, new figures show.

At the end of the month, the total UK personal debt stood at £1,391 billion, an increase of £10 billion on September and a 9.7 per cent growth over the past 12 months, research by Credit Action has found.

As a result, the average UK consumer owes £4,678 on unsecured personal loans, credit cards and overdrafts. Including mortgages, debt levels for the average household have risen to £55,877.

The research found that the UK`s personal debt increases by £1 million every four minutes, while £526 million is withdrawn from cash machines throughout the country each day.

Credit Action is a national financial education charity which aims to promote financial stability.