Wednesday 2nd of March 2011
The number of people in severe debt and likely to require IVA answers could be on the rise, following the release of Credit Action's latest UK debt statistics.
According to the figures, the average British adult currently owes - including mortgages - £29,838, which works out at being 125 per cent of average earnings.
It was shown that total UK personal debt at the end of January stood at £1,453 billion, while the 12-month growth rate remained at 0.7 per cent.
This means that individuals currently owe more than what the entire country produced in the year between quarter four 2009 and quarter three 2010.
Total lending in the first month of this year escalated by £1.5 billion, secured lending rose by £1.8 billion and consumer credit lending fell by £0.3 billion.
A study recently carried out by moneysupermarket.com revealed around five million adults in the UK are permanently overdrawn.
By Rachel Powell
