Credit Action releases its debt statistics for June

The money education charity Credit Action has released its debt statistics for June. The monthly release which includes amongst other info: details of the level personal and Government debt in the UK, employment data, amounts of debt written off by the banks and house repossessions; is seen as a collective indicator of the state of the nations financial health.

The key statistics from the June release, which shows month-by-month trends, include:

* CAB deal with 9,498 new debt problems each working day. Up from 8000 per day since May

* 1,348 people are made redundant daily. Down from 1392 last month.

* 850,000 people have been unemployed for more than 12 months. A small rise of 3000 people from last month.

* £55,854 is the average household debt (including mortgages) which remains more or less unchanged.

* £179m is the personal interest paid in UK daily which remains more or less unchanged since May.

* £20.71m is the daily write-offs of loans by banks & building societies which is down from £24.88m last month.

* Every 14 minutes a property is repossessed which is up from one every 17 minutes last month.

* £199,700,000 is the daily increase in Government national debt (PSDN). This is up considerably on the May figure of £133,200,000.

* £149,590,000 is the interest the Government has to pay each day on the UK’s net debt of £2299.8bn. This is up from £118,080,000 per day in interest in May and an increase of £47bn in UK’s total net debt.

Joanna Parsley, Associate Director at Credit Action was seemingly over optimistic saying, “June’s debt statistics show some interesting trends. As consumers we are choosing to pay down our debts, as this month shows that on average household debt including mortgages fell by £16 to £55,854.”

She went on to say: “Paying down debt is good, sensible money management advice, yet as consumers we’re doing it against a backdrop of an ever increasing cost of living.”

Frank Assessment

Let’s be honest here. A £16 reduction on the average household debt of £55,854 is so insignificant that its many multiples of times smaller than the margin of error used to calculate and report the statistics in the first place.

More significantly is the fact the number of debt problems referred to Citizens Advice each day is up 18% and the daily increase in Government national debt (PSDN) is now 50% higher than it was last month?

Just being Devil’s Advocate here but if we the taxpayer are being told we have to work a few more years to retire on less pension, with rising living costs but lower living standards, and much publicised public sector savings / savage cuts (depending where you sit on the fence) etc how is it that month on month, the amount the Government owes is still rising like a runaway train?

With Sovereign debt issues in Greece, Italy, Spain and Ireland set boil over and impact significantly on the whole Eurozone it is likely that the term ‘Double Dip’ will surface once more and if so, undermine the already fragile confidence buoying up the Euro Economies at present.

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

This blog is by no means financial advice and as per the spirit of blog’s in written in respect of a matter of opinion.

Whilst we cannot do much about the problems facing the Governments of the Eurozone, we can help your business reduce its outstanding debtor days, reduce late payment problems, reduce the likelihood of bad debts and recover debts and aged debts from your debtor book.

Get in touch for more info and a no obligation discussion about our successes and our No Recovery No Fee service.

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