The Money Stats September 2018 – Public Sector Improvements Mask Household Debt Concerns

Striking Numbers
£19.97: The fall in Debt growth per adult in June
£58,658: Average total debt per UK household in July 2018
£32,220: Average student debt for 2016 cohort in England
£227.94: Increase in consumer credit, per adult in the UK, in the year to July 2018
94%: First-time buyer deposit, as percent of average salary, in July 2018
0.2%: Average interest rate on instant access savings account in July 2018
18.35%: Average credit card interest rate in July 2018
34%: Proportion of income, including benefits, spent on rent by private renters
– 0.5%: Change in house prices in August 2018 according to Nationwide
– £31 billion: Change in Public Sector Net Debt (excluding debt to Bank of England) in the year to July 2018

Every Day in the UK
The population of the UK grew by an estimated 1,074 people a day between 2016 and 2017.
On average, a UK household spends £4.34 a day on water, electricity and gas.
301 people a day were declared insolvent or bankrupt in April to June 2018. This was equivalent to one person every 4 minutes and 47 seconds.
In August 2018, cash machines were used an average of 94 times a second across the UK.

Personal Debt in the UK
People in the UK owed £1.592 trillion at the end of June 2018. This is up from £1.545 trillion at the end of June 2017– an extra £900.74 per UK adult.
People in the UK owed £1.5955 trillion at the end of July 2018. This is up from £1.5494 trillion at the end of July 2017– an extra £884.32 per UK adult, and £69.32 higher than the previous month.
The average total debt per household – including mortgages – was £58,658 in July. The revised figure for June was £58,525.
Per adult in the UK that’s an average debt of £30,636 in July – around 113.0% of average earnings – up 0.3% on last month. This is up from a revised £30,567 a month earlier.

Mortgages, Rent and Housing
Outstanding mortgage lending stood at £1.382 trillion at the end of July. This is up from £1.35 trillion a year earlier.
That means that the estimated average outstanding mortgage for the 11.1m households with mortgage debt was £124,506 in July.
The average mortgage interest rate was 2.46% at the end of July. Based on this, households with mortgages would pay an average of £3,063 in mortgage interest over the year.
For new loans, the average mortgage interest rate was 2.07%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £2,907 in interest over the year.
According to UK Finance, gross mortgage lending in July totalled an estimated £24.6 billion. This is up 9.8% on July 2017.

Savings and Pensions
In Q1 2018, households saved an average of 4.3% of their post-tax income, including benefits. This is up from 3.2% in Q1 2017.
According to the Family Resources Survey, 45% of working age adults actively participated in a pension in 2016/17, up 2% on the previous year. This was 66% for employees, and 16% for the self-employed.

Spending and Loans
In the year to June 2018, consumer credit increased by 8.8% with new lending outstripping repayments according to UK Finance. In the year to July 2018, outstanding levels of credit card borrowing grew by 7.2%, slightly down on the rate of growth at the beginning of the year.
In Q1 2018, households in the UK spent £118.1m a day on water, electricity and gas – or £4.34 per household per day.
The average interest rate on credit card lending bearing interest was 18.35% in July 2018. This is 17.60% above the Bank of England Base Rate of 0.75%.

The Bigger Picture
The UK economy grew by 0.6% in the three months to July 2018, an increase from the 0.4% growth in the previous three months, according to the latest estimates from the Office of National Statistics.
CPI (Consumer Prices Index) 12 month rate stood at 2.3% in the year to July, the same as for the years to May and June 2018.
The largest contributors to inflation over the 12 months to July have been transport (0.7%), housing and household services (0.5%) and recreation and culture (0.4%).

About The Money Charity:
The Money Charity is the UK’s financial capability (financial education) 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.