As we edge closer to the half-way point of this year, i suppose we should be mindful of check once in a while if we have actually made any financial progress since the year began.
Courtesy of Credit Action, below are the UK Debt Statistics for1st of May, 2010 which can be a good indicator of how you are doing financially:
Total UK personal debt
Total UK personal debt at the end of March 2010 stood at £1,460bn. The twelve-month growth was 0.9%.
Individuals owe more than what the whole country produces in a year.Total lending in March 2010 rose by £0.6bn; secured lending increased by £0.3bn in the month; consumer credit lending increased by £0.3bn (total lending in Jan 2008 grew by £8.4bn).
Total secured lending on dwellings at the end of March 2010 stood at £1,239bn.
The twelve-month growth rate was 1.0%.Total consumer credit lending to individuals at the end of March 2010 was £222bn.
The annual growth rate of consumer credit was 0.4%.Average household debt in the UK is ~ £8,796 (excluding mortgages). This figure increases to £18,324 if the average is based on the number of households who actually have some form of unsecured loan.
Average household debt in the UK is ~ £57,950 (including mortgages).
If you add to this the March 2010 budget report figure for public sector net debt (PSND) expected in 2014-15 (excluding financial interventions) then this figure rises to £113,742 per household.Average owed by every UK adult is ~ £30,258 (including mortgages). This is 131% of average earnings.
Average outstanding mortgage for the 11.1m households who currently have mortgages now stands at ~ £111,590.Britain’s interest repayments on personal debt were £67.8bn in the last 12months. The average interest paid by each household on their total debt is approximately £2,692 each year. According to PwC the average household will need to spend approximately 15% of net income purely to service the interest payments arising from this debt.
Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,593 per average UK adult at the end of March 2010.
This is just the tip of the iceberg. For the complete statistics in PDF, click here to download and for previous months’ statistics visit Credit Action.
Looking at the above figures and compared to yours, are you above or below the average? Secondly, since the beginning of the year have made progress towards your financial freedom or not?
If you are finding it difficult gauging your financial progress, maybe it is time to re-define your goals and break them into smaller steps or better still get my book “Milestones of Financial Freedom” - It reveals the Simple Steps For Conquering Debt and Building Wealth. Get one today.
Niyi Adeoshun
Money Management Coach
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