UK Debt: August 2021 statistics

There is no doubt that the UK economy has seen a boom now that restrictions have eased and life seems relatively ‘back to normal’. People are spending their money here and the rise of the staycation this year has meant that income is being spent in the UK, which can only mean good news…but how exactly does the UK fare in terms of debt during the last three months? Let’s take a look at the August debt statistics which are released monthly by The Money Charity.

Snapshot of UK debt August 2021

• 406,000 18-24 year olds were unemployed in the second quarter of 2021 which is a better figure from the first quarter of the year
• 12.7% increase in the average first time buyer house price in the year to June 2021 which has increased from 8.6% in the first quarter and it has been found that it would take, on average, 9 years to save for a first time buyer deposit
• Private rental prices increased by 1.2% in the year to July 2021
• Average credit card debt per household stood at £2,022 which has increased from the first quarter of the year
• Total unsecured debt stands at £3,732 per adult in June 2021
• Average total debt per UK household is £62,706 in June this year, which is a rise of just under £2k since we reported on these statistics here

UK Personal Debt

Remember that you can view the statistics from the first quarter of 2021 here in order to compare with the August debt statistics.

• The UK population owed £1.742.7 billion at the end of June, which is an increase of £67.3 billion in the year or an extra £1,273 per adult
• The average total debt per household is £62,705 and per adult is £32,950
• On average, a UK household spends £4.33 per day on water, electricity and gas
• 298 people per day were declared insolvent or made bankrupt in England and Wales in May to July 2021 which amounts to one person every 4 minutes and 50 seconds which is an increase from the first quarter
• 1,088 people per day were made redundant from April to June 2021 
• A property was repossessed every 10 hours and 24 minutes in the months from April to June 2021 – this equates to 2.3 properties every day
• UK mortgages moving into arrears of over 2.5% of the remaining balance rose by 4 per day
• 27.5 mortgage possession claims were made daily in England and Wales in April to June 2021
• 77 landlord possession claims and 49.5 landlord possession orders were made daily
• UK unemployment rose to 529 people per day in the last twelve months to June 2021
• The average cost of raising a child from birth to the age of 18 is £23.25 per day for a couple and £28.22 per day for a single parent

If the past year has had a negative impact on your financial situation, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.