Published by: The Money Charity
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Key Take Aways
UK consumer debt has increased significantly, with total personal debt reaching £1,903.3 billion in May 2025, highlighting heightened credit utilisation among households.
The average credit card debt per household is £2,616, with outstanding unsecured debt contributing to ongoing financial vulnerability.
Changes in interest rates, including the Bank of England’s reduction of the base rate to 4.25%, have not yet translated into a reduction in high borrowing costs, especially for unsecured credit.
Housing affordability remains a challenge, with first-time buyer house prices rising by 3.6% annually and a 10-year savings horizon needed for the average house deposit based on current savings rates.
Mortgage arrears have decreased, yet repossessions still occur at notable levels, with 13.6 properties taken into possession daily.
Inflation persists above the Bank of England target at 3.6%, affecting the cost of li...
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