Corporate Credit Debt Recovery Blog – July Debt Statistics

Credit Action – The National Money Education Charity has released its latest month by month figures showing the state of the nation’s personal and sovereign debt.

The Key statistics show:

*New daily dent problem cases dealt with by CAB falls from 9500 new cases per day in June to 9072 in July

*Number of people being made redundant each day falls from 1348 to 1271.

*The number of people who have been unemployed for more than 12 months falls from 850,000 in June to 829,000 in July

*The average household debt (including mortgages) remains unchanged at £55,854, personal interest paid daily in the UK remains largely unchanged with a £1m fall to £178m and

*The daily write-offs of loans by banks & building societies remain static at £20.71m.

*A property is still repossessed every 14 minutes

And

*The daily increase in Government National Debt (PSDN) has gone up from £133billion in June, to £334billion in July

Worryingly the UK is the only one of the major G7 economies that shows danger levels in all three areas of debt, i.e. government, commercial and household. The UK’s government debt last year was at 89% of GDP, the safety limit is seen as 80 per cent.

Corporate debt should be lower than 90% of GDP but last year the UK had corporate debt levels of 126% and whilst household debt should stand at no more than 85%, it currently has a level of 106% of GDP

More belt tightening, more late payment problems and all amid rising costs and poor economic growth and increased uncertainty could possibly mean Mr Cameron’s Consumer Confidence-o-Meter is not so much as swinging into low levels of  confidence but heading not unlike the swing on a fairground pirate ship.

Perhaps President Ronald Reagan summed it up (albeit not knowing the microphone was on before his radio broadcast) when he said in 1982:

“I’ve talked to you on a number of occasions about the economic problems our nation faces, and I am prepared to tell you it’s in a hell of a mess—we’re not connected to the press room yet, are we?”

CCDR are a Liverpool based commercial debt recovery firm serving clients ranging from large corporate businesses or SME’s and micro businesses with services ranging from Debt Recovery, Commercial Debt Collection, Outsourced Credit Control, Debtor Tracing and Debt Mediation.

Nevermind the nations’ health, if you are concerned about the future health of your business and the impact of late payment problems, bad debt or invoice disputes get in touch with CCDR for some guidance.