Latest US/UK debt statistics released

Consumer credit in the United States increased at an annual rate of 5.9% in July 2011, according to the latest figures released by the Federal Reserve.

The Federal Reserve is the official body responsible for providing figures about consumer borrowing in North America, as the Bank of England does on this ’side of the pond’. The statistics reveal that revolving credit – that is, debts such as credit/store cards – saw an annual drop of 5.2% in July, whereas non-revolving credit (including things such as personal loans) increased by 11.2%.

Altogether, at the end of July, consumers in the USA owed a total of $792.5 billion in revolving debt, and $1,662 billion ($1.662 trillion) in non-revolving debt.

In comparison, figures released by the Bank of England show that in July 2011, total ‘lending to individuals’ (including secured lending) increased by £0.9 billion – a fall from the previous ’six-month average’ rise of £1.2 billion.

Specifically, ‘consumer credit’ saw an increase of £0.2 billion in that month – and credit card debt rose by £0.3 billion, showing no change from June 2011. However, ‘other loans and advances’ – which includes such types of lending as loans provided by Government student finance schemes – decreased in the same period by £0.1 billion.

Back when May’s debt statistics were released (you can read a comparison of US/UK debt statistics here), it was suggested that the increase in consumer debt in the US was a result of, amongst other things, a boost in credit card use, with people taking on more and more debt to cover the cost of fuel increases and rising rates of unemployment.

Over here in the UK, total unsecured debt stood at £209.4 billion in July 2011, with £57.1 billion of that outstanding on credit cards and £152.3 billion on other types of loans.  In the current financial climate, with rising living costs and falling disposable incomes having a big impact on many people’s finances, it appears that many are still turning to credit cards and other forms of unsecured debt to help them cover their costs.

Few latest US/UK debt statistics:

http://www.federalreserve.gov/Releases/g19/Current/
http://www.bankofengland.co.uk/statistics/li/current/index.htm
http://www.thinkmoney.com/loans/news/latest-lending-figures-from-bank-of-england-0-4773.htm
http://www.bankofengland.co.uk/statistics/li/current/index.htm