Personal loan customers contribute to £1.46tr debt

04 February 2010 17:09:26

Britons have built up a collective personal debt of nearly £1.5tr, made up of financial products including personal loans and credit cards.

The figure is contained in a new report from the National Audit Office, which revealed that UK consumers had £1.46tr of outstanding debt at the end of November 2009.

Overall, personal borrowing represented 160% of household annual pre-tax income at that time.

According to the report, the Department for Business, Innovation and Skills provided face-to-face debt advice to 270,000 people between April 2006 and September 2009, many of whom were struggling with repayments on personal loans and other forms of borrowing.

Amyas Morse, head of the National Audit Office, commented: "Many people are able to manage their debt, but for some the problems may seem insurmountable."

Mr Morse noted that the department's debt advice service has helped many people, but warned that "demand is outstripping capacity".

In response to the report, consumer minister Kevin Brennan said: "It is crucial that when people are struggling with debt, they seek help as soon as possible."

He added that the government would "not hold back from helping those most in need".

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