Personal Debt Statistics. A look at the lives of half a million people in debt in the UK

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1 Personal Debt Statistics Yearbook A look at the lives of half a million people in debt in the UK

2 Main findings Demand for debt advice 549,053 people contacted StepChange Debt Charity for help in. London continues to be the area where people are most likely to be in need of advice. There were over three million visits to the charity s website, a 97% increase on. What debts do people have? The average unsecured debt of our clients in was 13, The average number of debts per person was 5.6. Credit cards were the most common unsecured debt. The proportion of clients we see with arrears on essential household bills continues to grow. More than four in 10 now owe money on items such as council tax, rent and utilities. This is compared to around a quarter in. The data in this Statistics Yearbook is drawn from a StepChange Debt Charity warehouse containing the details of 20.5 million calls and over three million clients. figures are based on the 307,043 new clients in this year. 1 Not including arrears on essential household bills. Unless otherwise specified, data is based on the 307,043 new clients debt advised in. Who s seeking advice? More than half (57%) of those seeking debt advice in were employed. But of these, fewer people have full-time jobs, and more people have part-time jobs. More renters need help than ever before. In over 75% of StepChange Debt Charity clients live in rented accommodation, compared to a little over 50% five years ago. More young people are contacting us; 57% of clients are under 40, and 14% are under 25. A growing proportion of clients are single parents, now at close to. This compares to just 7% of UK households. The average income for clients has continued to fall, now annually at under 16,000 (net). The amount clients are left with at the end of the month has also fallen over the last year, now at an average of 55 per month. The biggest cause of falling into debt is an income or employment change. One in five of the charity s clients in fell into problem debt due to losing their job. A further 15% fell into problem debt due to a reduced or irregular income. The average income of our clients in was the lowest it has been in the previous five years. 2 StepChange Debt Charity research

3 Demand Overall demand Contacts 600, , , , , , Website visits (millions) Contacts Website visits Regional demand The highest level of demand comes from London and the north of England, each with over 100 clients per 10,000 local population. Clients per 10,000 population in Rank Rank Rank Rank Rank 5 95 Rank 6 91 Rank 7 86 Rank Rank Rank 9 73 Rank Rank 8 77 Statistics Yearbook: Personal Debt 3

4 Unsecured debts Unsecured debts 1,937 8,637 1,308 CATALOGUE 34.7% PERSONAL LOAN 42.6% PAYDAY LOAN 15.7% 1,725 1,063 OVERDRAFT 55.1% UNSECURED DEBT TYPE STORE CARD 12.5% 8,403 CREDIT CARD 65.7% % of clients with each type of debt HOME PAYDAY CREDIT LOAN 15.7% 9.1% 1,424 AVERAGE DEBT AMOUNT Unsecured debt over time Average total unsecured debt 20,000 15,000 10,000 4 StepChange Debt Charity research

5 Household bills Arrears on essential household bills over time 35% 25% 15% with arrears 5% 0% COUNCIL TAX ELECTRICITY GAS MORTGAGE RENT TV LICENCE WATER Based on clients with this type of expenditure only Statistics Yearbook: Personal Debt 5

6 Arrears on essential household bills average arrears amount MORTGAGE 2,966 COUNCIL TAX 961 WATER 704 Essential Household Bills RENT 922 ELECTRICITY 638 GAS 539 TV LICENCE 78 Average arrears on essential household bills 60% with arrears 50% 6 StepChange Debt Charity research

7 What do those in debt look like? Employment status Employed full time Employed part time Full time carer Looking after the family Retired Self employed Student Unemployed 25% 15% 5% Housing 70% 60% 50% Homeowners Renters Income and surplus 17, Annual (net) income 17,000 16,900 16,800 16,700 16,600 16,500 16,400 16, Monthly surplus 16,200 0 Annual (net) income Monthly surplus Statistics Yearbook: Personal Debt 7

8 Age 35% 25% 15% 5% Under and over Family composition 80% 70% 60% 50% 25.9% Couples with children (23% UK Av.) 15.6% Couples without children (36% UK Av.) 19.6% Single with children (7% UK Av.) 38.8% Single without children (34% UK Av.) Source: ONS Families and Households, UK Average Editor: Henry Hall For data tables, including additional raw data, visit the StepChange Debt Charity website here For help and advice with problem debts call (Freephone) Monday to Friday 8am to 8pm and Saturday 8am to 4pm, or use our online debt advice tool, Debt Remedy. Web: Foundation for Credit Counselling, Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no and SC Authorised and regulated by the Financial Conduct Authority