New report shows increase in the number struggling to manage their personal finances

UK Debt Statistics Report Cover

New report shows increase in the number struggling to manage their personal finances

  • The UK saw average personal debt rise by +11.93% over the last six months, amongst those struggling with their personal finance.
  • Those aged 60-69 had the highest level of average debt, standing at £20,644, however, those aged 30-39 experienced the highest increase in average debt levels, increasing +16.32% at the end of Q3.
  • Men have an average debt of £19,650.37, making up 43.48% of the total, while women have an average personal debt of £16,287.37, making up 54.15% of the total.
  • 80.88% of people struggling with their personal finances are earning less than £19,999 per annum.
  • 1 in 5 individuals were found to be struggling to manage their energy and utility bills.

 

Drawing on a dataset of nearly 300,000 insolvent UK consumers currently struggling with their personal finances, Aryza’s new UK Debt Statistics report found the average debt level across the UK to be £17,823. This is compared to £15,924 in Q1 2021, an increase of +11.93%.

According to the report findings, those living in England had experienced the biggest rise in personal debt across the board, when compared with the start of the year.

Scotland continued to dominate the top 20 UK locations with the highest debt levels, with Glasgow and Edinburgh both featuring in the top 20, with an average debt level of £21,195 and £19,649, respectively.

Kirkwall was found to have experienced the most significant climb in personal debt, with an increase of +82.40%. Aside from this, the majority of locations reporting the greatest change can be found in England.

Bradford (+36.73%) and Gloucester (+34.97%) saw the greatest personal debt increase in England, while a number of Southern locations including parts of London, Harrow (+29.20%) and Twickenham (+24.12%) joined the list.

Outside of England, Belfast (+28.85%) was the only Northern Irish city to feature in the top 20, Llandrindod Wells (+29.60%) and Llandudno (+26.83%) are the only two Welsh locations and Galashiels / Tweeddale (+33.48%) joins Kirkwall in Scotland.

Currently, men across the UK have an average debt of £19,650 and women have an average debt of £16,287.

The report also detailed how household debt, and specifically energy and utility bills were responsible for nearly one in five (18.33%) people analysed falling into debt. Debt on Hire Purchase agreements and to Local Authorities in the form of unpaid Council tax were both found in over 10% of records, coming in at 12.61% and 11.54%, respectively.

The increase in average debt levels has clearly been felt hardest in the younger age brackets, with those aged 30-39 experiencing the highest increase in average debt level, increasing by 16.32% in Q3. Those aged 60 – 69 have the highest level of average debt per person across the UK, standing at £20,644, closely followed by those aged 50-59, who have an average debt level of £20,584.

Colin Brown, CEO at Aryza, said:

“The UK is facing an incredibly difficult time, and many individuals are clearly struggling to manage their finances as the cost of living continues to rise. Our data helps paint a picture of how turbulent the past six months have been for individuals, with many factors such as soaring utility bill prices and uncertainty in the job market creating an extremely challenging financial environment.

“This UK wide report is the second in a series of regular reports, designed to provide updates on the state of the nation’s finances and we hope it is used to ensure the industry is taking action to support consumers.”

Aryza specialises in debt and insolvency software to help consumers manage their personal finances.

Click here to download the latest UK Debt Statistics Report.