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UK household debt hits a record | UK household debt hits a record |
(35 minutes later) | |
Household debt in the UK has reached a record level, according to figures from the Bank of England. | Household debt in the UK has reached a record level, according to figures from the Bank of England. |
Individuals now owe a total of £1.43 trillion, including mortgage lending, slightly above the previous high. | Individuals now owe a total of £1.43 trillion, including mortgage lending, slightly above the previous high. |
The previous record was set in September 2008, just before the effects of the financial crisis and the recession began to bite. | The previous record was set in September 2008, just before the effects of the financial crisis and the recession began to bite. |
The rise reflects the willingness of consumers to borrow more, as a recovery comes into sight. | The rise reflects the willingness of consumers to borrow more, as a recovery comes into sight. |
However, the figures may also show that families are having to borrow to deal with the higher cost of living, and to pay household bills. | However, the figures may also show that families are having to borrow to deal with the higher cost of living, and to pay household bills. |
The precise amount owing is £1,429,624,000,000. | |
That compares with the previous high of £1,429,595,000,000 five years ago, a difference of just £29m. | |
Most of the debt is in mortgages, which have been rising steadily. | Most of the debt is in mortgages, which have been rising steadily. |
Unsecured lending - on credit cards or with bank overdrafts - has also started to recover since the recession. | Unsecured lending - on credit cards or with bank overdrafts - has also started to recover since the recession. |
However, the figures show that unsecured borrowing actually fell in October, From £158.8bn to £158.6bn. | However, the figures show that unsecured borrowing actually fell in October, From £158.8bn to £158.6bn. |
The news will increase concerns that the UK's recovery is based on increased borrowing, rather than growth sustained by rising incomes. | The news will increase concerns that the UK's recovery is based on increased borrowing, rather than growth sustained by rising incomes. |
However, the total debt figure is not adjusted for inflation. | However, the total debt figure is not adjusted for inflation. |
The Bank of England has pointed out that relative to income, debt levels have been falling. | The Bank of England has pointed out that relative to income, debt levels have been falling. |