Average Personal Debt in UK Increases

Total personal debt in the UK now stands at £1,464 billion after increasing by 0.9 per cent over the last year, a new report has revealed.

The figure could inspire a number of homeowners to look into equity release as a way of boosting their income.

taken from a recently-published study by Credit Action has shown that the average household debt in the UK now stands at £8,920.

This debt could be reduced for homeowners with the use of a reversion plan equity release scheme, which allows them to receive a tax-free lump sum by selling part of their home.

Owners will be able to remain in their homes rent free through a guaranteed lifetime lease.

The Credit Action figures also revealed that last month saw a £2.1 billion rise in the amount of money being borrowed by Britons.

This represented a £1.6 billion increase in secured lending and a £0.5 billion rise in consumer credit lending.