Latest news

Level of debt fell in June

The amount of unsecured debt that we`re collectively carrying fell again in June.

In terms of unsecured debt, people paid back £98m more than they borrowed throughout the month of June, latest figures from the Bank of England reveal.

Credit card lending actually increased - by around £0.1bn - but when it came to `other loans and advances`, people repaid around £0.2bn more than they borrowed.

During the previous month, the total amount of unsecured debt had increased by £287m.

As for secured debt - like mortgages - the total amount owed increased by £665m in June, as people borrowed a fair bit more than they repaid. Having said that, £665m is quite a small increase: back in 2007, the amount of secured debt increased by an average of around £9bn every month, and even this year we`ve seen one increase of £1.688bn (in February).

"People are still cautious about taking on extra debt," said a spokesperson for the IVA Advisory Centre, "which is a sensible attitude to have at a time like this. A lot of economists are concerned about the impact the `austerity measures` will have on the economy, so many people are doing their best to clear their debts, rather than taking on any more.

"But not everyone will be able to keep up with their debts. We would advise anyone who`s struggling with debt to talk to an adviser and find out how they could go about regaining control of their finances. They may find that an IVA [Individual Voluntary Arrangement] or other debt solution can provide the help they`re looking for."