Total personal debt in the UK is on the rise, new figures have suggested.

According to statistics provided by Credit Action, the amount stood at 31,455 billion at the end of September.

This sum means individuals now owe more than what the whole country produces in a year, while the 12-moth growth amount rose by 0.8 per cent across the month.

Moreover, total lending in the period swelled by £0.4 billion and secured lending increased by £0.1 billion.

Consumer credit lending over the four-week timeframe also elevated by £0.3 billion.

The figures showed total secured lending on dwellings at the end of the month stood at £1,240 billion, following a slight decrease in the 12-month growth rate to 0.8 per cent.

Consumer credit lending to individuals amounted to £216 billion after the annual growth rate escalated from 0.3 per cent to 0.6 per cent, while the write-off rate on consumer lending by UK monetary financial institutions to adults jumped to 7.4 per cent.

The numbers mean the average household debt in the UK – excluding mortgages – is currently £8,562, while the figure leaps to £357,737 when the home loans are taken into account.

When amounts are based on the number of households that have some form of unsecured loan, the sum adds up to £17,838 excluding mortgages.

Research recently carried out by the Post Office revealed people in Britain have borrowed more than £7 billion from their close friends in an attempt to plug the gaps in their income.

By James Francis

Damage to property caused in the time period between Halloween and Bonfire Night could be about to exacerbate the debt fears being felt by money, new research has suggested.

The study, carried out by Santander, revealed 23 per cent of Britons have fallen victim to ‘mischief week’.

It means 11.3 million households have been affected in the time frame and have faced an average bill of £324 in repair fees.

The investigation found around 5.9 million people have had eggs thrown at their homes, while six per cent have suffered damage to their garden.

Moreover, three per cent of those questioned have seen their property struck by stray fireworks and another three per cent witnessed their residences damaged by sparklers.

A further three per cent had items such as fireworks and silly string posted through their letterboxes.

Two per cent of respondents revealed they have had their windows broken during ‘mischief week’, while another two per cent have had graffiti sprayed on their houses.

Furthermore, two per cent of people quizzed claimed they have been violently attacked by individuals using fireworks as weapons.

From a geographical view, those living in the north-west of England are the most likely to be affected by pranksters during the period.

Miguel Sard, chief executive officer at Santander Insurance, said: “Not only is there a risk of property and possessions being damaged, but with many people out and about viewing fireworks or trick or treating, burglars see this as a great opportunity to enter people’s homes.”

HSBC recently claimed many people in the UK do not have an adequate financial safety net to fall back on should they lose their jobs.

By Joe White

The cost of having a baby may be contributing to debt fears for expectant parents in the UK.

This is because new research carried out by Sainsbury’s Finance Personal Loans has found mothers and fathers-to-be require an average of £2,980 to fund purchases needed for the new arrival.

Such expense includes items such as a buggy, a car seat, clothes and toys, as well as essentials such as products needed to decorate and furnish a nursery.

The study discovered 6.1 million adults in Britain over the last five years have planned or are currently gearing up for the introduction of an infant – and are paying for the costs incurred by using their savings, using credit cards and personal loans and borrowing from family and friends.

Despite the average financial requirement being £2,980, the investigation discovered around 643,000 parents and expectant mums and dads will borrow additional cash in order to make larger purchases.

This includes items such as a new car or home improvements at a value of around £5,010.

The survey revealed adults expecting the arrival of an infant have taken out loans worth an estimated £2.32 billion in order to fund purchases related to the birth.

Steven Bailie, head of loans at Sainsbury’s Finance, said: “Preparing for a new arrival can be expensive when you take into consideration costs such as buying the necessary equipment, upgrading the family car or maybe even extending your property.”

Recent research from the Post Office found many people in the UK are turning to their friends in search of financial support, as more than £7 billion has been borrowed by individuals from their mates.

By Joe White

People in the UK may be exacerbating their debt concerns by continuing to borrow money from their friends, new research has indicated.

Carried out by the Post Office, the study revealed the effects of the recession have resulted in a new type of lending to emerge – the ‘bank of friends‘.

It showed individuals in the UK have borrowed more than £7 billion from their mates to cover the gaps in their income.

The investigation focused on lending between adults and discovered more than a quarter of those surveyed (26 per cent) have given money to an average of four pals in the last 12 months with a view to receiving the cash back at a later date.

It was worked out that the average amount of each instance was £133.

However, the report found less than half the money handed out has been repaid – meaning there is still an outstanding balance of just under £3 billion owed between friends.

Moreover, it was shown 18 per cent of respondents are lending more money than they can actually afford, while 19 per cent cannot remember the amount they presented to their mates.

And instead of paying the amount back in cash, friends appear to be settling the sum through other means, such as alcohol, a favour in return and a thank you card.

Doug Strachan, director of financial services at the organisation, said: “The Post Office is urging people to make sure they don’t put themselves, or their household, into financial difficulty when helping others.”

Research recently conducted by The Co-operative Electrical found many under-35s are willing to borrow money to fund their Christmas spending this year.

By James Francis