New debt figures released by the British Bankers Association have shocked many people by showing Bath as the debt capital of the UK.
The new statistics from the BBA broke down the amount of unsecured loans by postcode, showing BA1 9 as the highest amount of debt per person.
According to the report, each person in the BA1 9 postcode owes an average of £2,311 in unsecured debt, with an overall debt of £129, 701.
Debt By Postcode
Overall the postcode with the largest unsecured debt was SE28 8 with £13,531,774 owed, but this is in the South East London region.
The G75 8 in Glasgow had the second highest number of overall unsecured debt with £12,297,836, which like Bath has a lot of properties.
Many experts argue the reason these regions have such large unsecured debt is due to them having more assets such as property or vehicles.
Overall UK Debt
- Overall almost £30bn is owed in personal loans across the entire UK
- £901bn is stilled owed on mortgages, almost half (44%) is just in London and South East England
- London is the region with the most unsecured debt with almost £5bn owed
Dealing With Debt
Whether someone has a property which they are using to borrow or taking a personal loan to repay other debts, it's possible either could be financially struggling.
We have experience of people who have borrowed an unsecured loan to repay another debt but only to get a lower interest rate and are financial secure.
In other cases we've witnessed people who have a property and they borrow in order to pay the morgage because they are struggling financially.
It would be easy to assume affluent postcodes would borrow more money because they can afford to repay it, however that's not always the case.
While they may have an asset, such as a house, to rely on should debts become too much that would also rely on the housing market remaining steady.
If anyone is struggling with making their credit commitments it's important to seek debt advice on 0800 085 0226.