Average Briton owes more than £30,000

Tuesday, June 8th 2010

New statistics highlight the depth of Britain's debt problem, with each individual adult owing an average of £30,228.

The figure, released by Credit Action as part of its June report, is typically 126 per cent higher than average earnings, meaning for many there is no short-term route out of the red.

In addition to personal debt, each of the 11.1 million households in the UK with a mortgage to repay owes £108,809.

This month's Credit Action statement also reveals average borrowing on credit cards has risen to more than £4,500 per British adult.

The inability of many Britons to save - and the temptation to put purchases on plastic - could be threatening the country's long-term financial health, as well as the potential for many to retire in their 60s.

Of the people currently able to save cash, the Fair Investment Company this week suggested there has been a 275 per cent rise in the amount of cash deposits placed in safe havens during the last quarter.