UK: personal debt rises in 2003

Unsecured borrowing - debt on credit cards, loans and overdrafts - jumped by almost a third during 2003 in the UK, with personal debt now averaging £4,426 (€6,362) per adult.

In a report released today by market analyst Datamonitor, levels of unsecured debt levels have risen by more than £1,000 since 2002, when the figure was £3,383 (€4,863).

Datamonitor suggested that low interest rates, high levels of employment and rising house prices had pushed ahead consumer confidence which has resulted in people in the UK now owing collectively £175.6bn (€252.4bn).

New lending in the UK broke through the £200bn (€287.4bn) mark for the first time last year.

Credit cards and loans were the most popular means of borrowing in 2003, together accounting for 80% of outstanding debt.