A look at the lives of half a million people in debt in the UK. Statistics. Yearbook. PerSonAl Debt 2015 ... Credit card
Personal Debt 2015
Statistics Yearbook
A look at the lives of half a million people in debt in the UK
Main findings 2015
Demand for debt advice 549,053 people contacted StepChange Debt Charity for help in 2015. 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 2012. What debts do people have?
Who’s seeking advice?
The average unsecured debt of our clients in 2015 was £13,9001. The average number of debts per person was 5.6. Credit cards were the most common unsecured debt.
More than half (57%) of those seeking debt advice in 2015 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 2015 over 75% of StepChange Debt Charity clients live in rented accommodation, compared to a little over 50% five years ago.
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 2011. 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. 2015 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 2015.
2
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 20%. 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 2015 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 2015 was the lowest it has been in the previous five years.
StepChange Debt Charity research
Demand
Overall demand 3.5 3
Contacts
500,000 400,000
2.5
300,000
2
200,000
1.5
100,000
1
2009
2010
2011
2012
2013
2014 Contacts
Website visits (millions)
600,000
2015 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 2015 25-50 75-100
50-75 100-125
2015 Rank 12 42
Rank 11 2015 44 Rank 2 2015 112
Rank 3 2015 100 2015 Rank 4 100 Rank 10 2015 58 2015 Rank 5 95 2015 Rank 6 91
Rank 9 2015 73 Rank 1 2015 114
2015 Rank 7 86 Rank 8 2015 77
Statistics Yearbook: Personal Debt 2015
3
Unsecured debts
Unsecured debts
£1,937 £1,308
£8,637
CATALOGUE
34.7%
PERSONAL LOAN
PAYDAY LOAN
42.6%
15.7%
£1,725
£1,063 OVERDRAFT
STORE CARD
55.1%
% of clients with each type of debt
CREDIT CARD
£8,403
12.5%
UNSECURED DEBT TYPE
PAYDAY LOAN HOME CREDIT
15.7% 9.1%
65.7%
£1,424
AVER AGE DEBT AMOUNT
Average total unsecured debt
Unsecured debt over time
£20,000 £15,000 £10,000
2011
4
2012
2013
2014
2015
StepChange Debt Charity research
Household bills
Arrears on essential household bills over time 40%
35%
30%
20%
Proportion of clients with arrears
25%
15%
10%
5%
0%
COUNCIL TAX
ELECTRICITY
Based on clients with this type of expenditure only
Statistics Yearbook: Personal Debt 2015
GAS
MORTGAGE
RENT
2011
TV LICENCE
2012
2013
WATER
2014
2015
5
Arrears on essential household bills
avERAGE arrears amount
MORTGAGE
£2,966
RENT
COUNCIL TAX
£922
£961
Essential
Household
Bills
WATER
£704
ELECTRICITY
£638
TV LICENCE
GAS
£78
£539
Average arrears on essential household bills
Proportion of clients with arrears
60% 50% 40% 30% 20% 10%
2011
6
2012
2013
2014
2015
StepChange Debt Charity research
What do those in debt look like?
2011 2012 2013 2014 2015
Retired
Self employed
Student
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
Looking after the family
2011 2012 2013 2014 2015
Full time carer
2011 2012 2013 2014 2015
Employed part time
2011 2012 2013 2014 2015
Employed full time
2011 2012 2013 2014 2015
Employment status
Unemployed
Proportion of clients
30% 25% 20% 15% 10%
2011 2012 2013 2014 2015
5%
Housing
Proportion of clients
70% 60% 50% 40% 30% 20%
2011
2012
2013
2014
2015 Homeowners
Renters
Income and surplus £70
£17,100
£60
£16,900
£50
£16,800 £16,700
£40
£16,600
£30
£16,500
£20
£16,400
Monthly surplus
Annual (net) income
£17,000
£10
£16,300
£0
£16,200
2011
2012
2013
2014 Annual (net) income
Statistics Yearbook: Personal Debt 2015
2015 Monthly surplus
7
Age
40%
Proportion of clients
35% 30% 25% 20% 15% 10% 5%
2011
2012
2013
2014 Under 25
2015 25-39
40-59
60 and over
Family composition 80%
Proportion of clients
70% 60% 50% 40% 30% 20% 10%
25.9%
15.6%
19.6%
38.8%
Couples with children
Couples without children
Single with children
Single without children
(23% UK Av.)
(36% UK Av.)
(7% UK Av.)
(34% UK Av.)
UK Average
Source: ONS Families and Households, 2015
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) 0800 138 1111 Monday to Friday 8am to 8pm and Saturday 8am to 4pm, or use our online debt advice tool, Debt Remedy. Email:
[email protected] | Web: www.stepchange.org | Twitter: @stepchange
© 2016 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.1016630 and SC046263. Authorised and regulated by the Financial Conduct Authority
