The Money Statistics March 2019

Striking Numbers

  • £2,638: Average credit card debt per household in January 2019
  • 1.9%: Increase in Consumer Prices Index in the year to February 2019
  • £59,409: Average total debt per UK household in January 2019
  • 0.4%: Average increase in house prices in the year to February 2019, according to Nationwide
  • -5.3%: Change in the average real wage since pre-crash peak in February 2008
  • 0.84%: Average interest rate on a cash ISA in January 2019
  • 18.67%: Average credit card interest rate in January 2019
  • 26 years and 5 months: Time to pay off average credit card debt making only the minimum payment each month
  • £4.56 billion: Public sector net surplus (excluding RBS and Bank of England) in the three months to January 2019

Every Day in the UK

  • The population of the UK grew by an estimated 1,166 people a day between 2017 and 2018.
  • On average, a UK household spends £3.97 a day on water, electricity and gas.
  • Citizens Advice Bureaux in England, Wales and Northern Ireland dealt with 2,491 debt issues every day in the year to February 2019.
  • The number of people unemployed fell by 307 per day in the year to January 2019.
  • Government debt increased by £73.7 million a day in the year to January 2019.

Personal Debt in the UK

  • People in the UK owed £1.629 trillion at the end of January 2019. This is up from £1.579 trillion at the end of January 2018, an extra £952.50 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,409.
  • Per adult in the UK that’s an average debt of £31,073, around 112.4% of average earnings. This is up from a revised £30,992 a month earlier.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.413 trillion at the end of January 2019. This is up from £1.371 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.9 million households with mortgage debt was £129,126 in January 2019.
  • The average mortgage interest rate was 2.48% at the end of January. Based on this, households with mortgages would pay an average of £3,202 in mortgage interest over the year.
  • For new loans, the average mortgage interest rate was 2.11%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,007 in interest over the year.
  • According to UK Finance, gross mortgage lending in January 2019 totalled an estimated £21.6 billion, down 0.3% on December 2018.

Savings and Pensions

  • In Q3 2018, households saved an average of 4.3% of their post-tax income, including benefits. This compares with 4.4% in Q3 2017. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12% in Q3 2009.
  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.25% in January 2019. For a cash ISA, this was 0.84%.
  • If someone on the average salary saved 4.3% of their income in an average instant access savings account for a year, they would receive £2.38 in interest after tax. If they saved it in an average cash ISA, they would receive £9.98.

Spending and Loans

  • In the year to December 2018, consumer credit increased by 6.6% according to UK Finance, while outstanding levels of credit card borrowing grew by 7.1%, slightly down on the rate of growth in early 2018.
  • In Q3 2018, households in the UK spent £108.8 million a day on water, electricity and gas, or £3.97 per household per day. On a seasonally adjusted basis, this was similar to Q2 2018.
  • The average interest rate on credit card lending bearing interest was 18.67% in January 2019. This is 17.92% above the Bank of England Base Rate of 0.75%.

The Bigger Picture

  • The UK economy grew by 0.2% in the three months to January 2019, the same rate as the fourth quarter of 2018, according to the latest estimates from the Office of National Statistics.
  • The CPI (Consumer Prices Index) increased by 1.9% in the year to February 2019, up 0.1% compared with the year to January 2019. These two months are the first time inflation has been below the Bank of England’s 2% target since January 2017.
  • The highest rates of inflation over the 12 months to February 2019 were for alcohol and tobacco (5.1%), communication (3.6%), transport, education, recreation and culture (all 3.1%).

About The Money Charity:

The Money Charity is the UK’s financial capability charity. Our vision is that everyone has the ability to be on top of their money as a part of everyday life. We empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money throughout their lives.