Debt on the rise

Debt on the rise

According to the latest statistics from the ONS, total household debt in Great Britain was £1.28 trillion in April 2016 to March 2018, of which £119 billion (9%) was financial debt and £1.16 trillion (91%) was property debt (mortgages and equity release), rising by £12 billion (11%) in the latest period.  The rise is up from £107 billion in April 2014 to March 2016, with most of the change accounted for by increased hire purchase debt (up by £6 billion) and student loans from the Student Loans Company (up by £7 billion).  The least wealthy 50% of households held 36% of total household debt in April 2016 to March 2018, but whilst they held less debt their total debt was a relatively large proportion of their total wealth, with less wealthy households being more likely to have financial debt.  4% of households in April 2016 to March 2018 were identified as having problem debt; households in problem debt were more likely to rent their home (66% renting compared with 34% for all households)