The UK's average credit card debt per household grew by *** British pounds between December 2021 and December 2022, the first increase since 2020. Standing at ***** British pounds at December 2022, the figure contrasts with the decline in 2020 – when the debt declined from ***** British pounds to ***** British pounds. That particular drop was likely a result of Covid-19's economic impact, and consumers trying to get rid of their credit card debt. The increase in 2022 may be caused by growing interest rates and the cost of living crisis beginning to take shape.

Clients seeking financial advice from the debt charity StepChange in the United Kingdom had on average approximately ***** British pounds of unsecured credit card debt in 2022. On average, the new clients of this charity owed more unsecured debt from personal loans than from any other type of credit.

In the 4th quarter of 2024, the debt of households in the United Kingdom amounted to ***** percent of their income. This indicator shows the average level of indebtedness of the general population and their ability to repay their debts. The total value of household debt (total liabilities and loans to households) has increased annually since 2000. Debt to income ratio increased during the pandemic As we have seen here, households have been decreasing their indebtedness levels in the past years. However, the volume of new consumer lending actually soared between 2022 and 2024. Meanwhile, the growth rate of mortgages in the UK has remained lower these past years, but it has also shown an increase on amount of lending.

Indebtedness in Europe The household debt of many countries in Europe as a share of their disposable income in 2024 was over 100 percent. That was mostly the case for Northern and Western European countries, such as Norway, the Netherlands, and Denmark. Germany and Austria were some of the largest exceptions, as they were among the few countries in that part of Europe with households' debt representing less than ** percent of their income.

In the first half of 2024, the total value of debt from loans to households in the United Kingdom amounted to approximately two trillion British pounds. It was in 2004, when household debt surpassed the one trillion British pounds mark. Debts can be formed in a number of ways. The most common forms of debt for households include credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.

Most of the overdue money for bills and loans of people who sought debt advice in 2022 came from mortgage payments. On average, clients who came to the charity StepChange seeking credit counseling had nearly ***** British pounds for rent payments past due. Meanwhile, that group of people also owed over ***** British pounds on payments for dual fuel, which is a type of utility where households get their gas and electricity supply from the same provider.

Key information about United Kingdom Non Performing Loans Ratio

• United Kingdom Non Performing Loans Ratio stood at 1.0 % in Dec 2022, compared with the ratio of 1.0 % in the previous year
• UK Non Performing Loans Ratio data is updated yearly, available from Dec 2005 to Dec 2022
• The data reached an all-time high of 4.0 % in Dec 2011 and a record low of 1.0 % in Dec 2021

• In the latest reports, Money Supply M2 in UK increased 0.7 % YoY in May 2023
• UK Foreign Exchange Reserves was measured at 116.0 USD bn in May 2023
• The Foreign Exchange Reserves equaled 1.9 Months of Import in Apr 2023
• The country's Domestic Credit reached 4,978.3 USD bn in Apr 2023, representing an drop of 3.3 % YoY
• Household Debt of UK reached 2,756.4 USD bn in Mar 2023, accounting for 88.0 % of the country's Nominal GDP

Argentinian consumers performed roughly ** credit card payments per capita in 2022, a slight increase from 2022. This according to estimates based off credit card figures from the country's central bank. No information is provided why this number went down in the South American country during the first year of the coronavirus pandemic. Arguably, this could coincide with a trend in the UK of paying off credit card debt during lockdown.

The are several factors that can accumulate in the repossession of a home, the most common reason for being mortgage arrears. This occurs when borrowers can no longer make the mortgage repayments. Mortgage lenders will repossess the home to sell to recover the money owed. In 2023, between 176 and 424 homes in England were repossessed monthly. In Wales, this figure ranged between 14 and 32. Which regions saw the most repossessions? The North West recorded the highest number of repossessions in 2023. Conversely, the East of England, South West, East Midlands, and Wales had the lowest number of repossessions. London and South East, the regions with the highest average earnings, ranked in the middle. Mortgage arrears on the rise Mortgage arrears in the UK have increased quarter-on-quarter since the third quarter of 2022, showing that homebuyers are increasingly struggling to meet their monthly obligations. Borrowers who missed a mortgage payment were highly likely to also fall behind on other financial commitments, with credit card debt being the most common one.