Average Personal Debt in the UK

Why is personal debt growing so fast in the UK, and how much does the average person actually owe? The latest data on the average debt UK shows a worrying trend: more people are relying on credit cards and loans just to get by. From rising living costs to high interest rates, debt is becoming a common part of everyday life for millions.

In this article, we break down the average personal debt in the UK, look at average credit card debt, and explore which groups carry the most debt. You’ll also find out what’s driving these numbers and what steps you can take if you’re struggling with debt yourself. Whether you want to stay informed or find ways to reduce your own debt, this guide will give you clear and simple answers.

What Is the Average Personal Debt in the UK?

As of 2025, the average personal debt UK, excluding mortgages, is around £2,400 per adult. This figure covers unsecured debts like credit cards, overdrafts, store credit, and personal loans. If you include all household borrowing, such as car finance and student loans, the average debt per person UK rises to between £7,000 and £8,000.

These numbers reflect how reliant many people have become on borrowed money, not just for major purchases, but to get through each month.

What Counts as Personal Debt?

Personal debt usually falls into two main categories:

• Secured debt – Loans backed by assets (like a mortgage or car loan)
• Unsecured debt – Credit cards, payday loans, personal loans, and overdrafts

It’s the unsecured debt that’s rising most rapidly in the UK. Many households are turning to short-term borrowing to cover everyday costs such as groceries, energy bills, and rent.

Key Debt Trends in the UK

Some of the most recent figures reveal:

• Total non-mortgage personal debt in the UK has passed £60 billion
• Average unsecured debt per household is between £2,400 and £3,000
• The national debt-to-income ratio has climbed to over 118%

This means that, for many people, their personal debt now outweighs their yearly income. And with rising interest rates and high inflation, it’s no surprise more people are struggling to stay afloat.

But while this gives a clear picture of overall debt, things start to look even more troubling when we take a closer look at credit card debt, a fast-growing and expensive form of borrowing.

Average Credit Card Debt in the UK

Credit cards are now a common tool for managing daily expenses, but they come at a cost. The average credit card debt UK currently sits around £2,579 per household, with many people holding individual balances of £1,600–£1,800. That’s not just for emergencies anymore. Many are using credit cards to pay for the basics, food, fuel, and utility bills.

Unlike personal loans with fixed repayments, credit card balances can roll over for months or even years. And with average APRs now between 30% and 40%, interest builds quickly—especially for those making only minimum payments.

How Credit Card Debt Compares to Other Debts

Credit card borrowing may not always be the largest in terms of balance, but it’s often the most expensive. It’s flexible and easy to access, which makes it tempting, but also risky. Many people underestimate how quickly interest can grow if the balance isn’t paid off in full.

Other types of unsecured debt, like personal loans, tend to offer lower interest and set repayment periods. But credit cards, with their high rates and revolving nature, can trap people in long-term debt before they even realise it.

Why People Are Relying on Credit Cards

In the past, credit cards were often used for one-off purchases or as a safety net. Now, they’ve become a regular part of household budgeting. Common reasons for credit card use include:

• Covering grocery bills
• Paying for fuel or transport
• Managing higher energy costs
• Filling gaps between paydays

The shift from emergency use to everyday reliance highlights just how stretched many UK households have become.

But the impact of debt isn’t felt evenly across the country. Some groups and regions are hit much harder than others. So, who’s carrying the biggest financial burden in today’s UK economy? Let’s find out next. 

Who Has the Most Debt in the UK?

People aged 25 to 44 often carry the highest levels of unsecured debt, as this group tends to face the most financial pressure, from childcare and housing costs to student loan repayments.

In contrast, older age groups, especially those aged 65 and above, tend to carry less personal debt. Many in this group are more financially stable, with mortgages paid off and fewer dependents. However, younger adults (under 25) can still struggle with debt, especially from overdrafts and credit cards, despite generally having lower total balances.

Gender also plays a role. Research has shown that men typically carry higher average personal debt UK-wide, especially on credit cards and loans. But women are more likely to fall behind on repayments, often due to lower average incomes and caring responsibilities.

Where in the UK Is Debt Highest?

Debt levels also vary greatly depending on where you live. Urban areas and major cities often have higher average debt due to a higher cost of living and more access to credit.

Some of the cities with the highest average credit card debt UK-wide include:

• Leeds
• Manchester
• Glasgow
• London

In these areas, it’s not uncommon to see credit card debts pushing £9,000 or more per household. These regions also see higher use of payday loans and high-interest credit products.

At the same time, rural and lower-income areas may also show high debt levels relative to income, even if the total amount borrowed is smaller. This makes the burden of debt even more difficult to manage.

Struggling with debt? Worry not. Reach out to us today and we will guide you through the best course of action:

Why Debt Is Rising in the UK

One of the biggest reasons for rising average personal debt UK is the steady increase in interest rates. In response to inflation, the Bank of England raised base rates multiple times between 2022 and 2024. This directly affects credit card APRs, loan rates, and even overdraft fees.

Borrowing that was once affordable has now become much more expensive. For example, a credit card that once charged 19% APR may now be closer to 35%–40%. These rising rates mean that even small balances can lead to large interest payments over time, making it harder for people to reduce their debt.

The Cost of Living Crisis

High interest rates are only one part of the problem. The cost of living in the UK has surged in recent years, with sharp increases in food, fuel, energy bills, and rent. This has pushed many people to borrow just to keep up with basic expenses.

In many households, wages haven’t grown at the same pace as inflation. As a result, more people are turning to credit cards and short-term loans just to fill the gap between paydays. What used to be emergency borrowing has now become part of the monthly routine.

Common reasons people fall into debt include:

• Paying for groceries
• Covering rent or mortgage shortfalls
• Managing unexpected bills or repairs
• Keeping up with rising utility costs

This cycle, where everyday costs drive borrowing, and borrowing becomes harder to repay, creates a debt trap that’s difficult to escape.

The big question now is: what can people actually do about it? In the next section, we’ll look at practical ways to manage and reduce debt, before it spirals out of control.

How to Manage and Reduce Personal Debt

One of the most effective ways to tackle debt is to track your spending and build a basic budget. Many people underestimate how much goes out each month, and small daily purchases can quickly add up.

Start by listing your total income, then track all your expenses, including:

• Rent or mortgage
• Utility bills
• Food and transport
• Subscriptions and memberships
• Loan and credit card repayments

Once you have a clear picture, look for areas to cut back. Even saving £50–£100 per month can make a big difference when paying off debt. Set aside a small emergency fund if possible, so you don’t need to borrow again when unexpected expenses arise.

Make a Plan to Pay Off Credit Cards

If you have credit card debt, focus on paying more than the minimum each month. Minimum payments keep you in debt for longer and cost you more in interest.

Here are some smart repayment strategies:

• Pay off the highest interest card first (known as the avalanche method)
• Use balance transfer cards to move your debt to a card with 0% interest, just be sure to pay it off before the offer ends
• Automate your payments to avoid late fees and missed deadlines

Avoid using credit cards for new purchases until you’ve brought your balance down. If you must use one, try to pay it off in full each month to avoid added interest.

Get Help From Free Debt Advice Services

If your debt feels overwhelming, you’re not alone, and there is help available. Several UK organisations offer free, confidential advice to help you create a plan, negotiate with creditors, or even freeze interest in certain cases.

Trusted places to get support include:

• StepChange Debt Charity
• Citizens Advice
• National Debtline

These organisations can help you explore options like Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), or even debt relief if needed.

Unsure which option to move forward with? Reach out to us today and we will guide you through the best course of action:

Conclusion

The numbers around average debt UK show just how common personal debt has become, but they also remind us of the importance of staying in control. From average credit card debt UK to broader household borrowing, millions of people across the country are facing financial pressure due to rising costs, high interest rates, and everyday spending needs.

Whether you’re dealing with credit card balances, overdrafts, or struggling to stretch your income each month, you’re not alone, and there are practical steps you can take. By budgeting carefully, choosing smart repayment strategies, and getting free help when needed, it is possible to reduce debt and build a more secure financial future.

Debt may be rising, but so can your confidence in dealing with it. Take the first step today

Key Points

• The average personal debt in the UK (excluding mortgages) is around £2,400 per adult, with total household debt often exceeding £7,000–£8,000 per person.
• Unsecured debt, including credit cards, overdrafts, and personal loans, is rising quickly due to increased living costs and stagnant wages.
• The average credit card debt per household in the UK is around £2,579, with many individuals holding balances between £1,600 and £1,800.
• High credit card interest rates (30%–40% APR) make this one of the most expensive forms of borrowing in the UK.
• People aged 25–44 carry the most personal debt, while men typically have higher balances than women.
• Cities like Leeds, Manchester, Glasgow, and London report the highest levels of credit card debt in the country.
• Rising interest rates and ongoing inflation have made borrowing more expensive and pushed more people into debt.
• The cost-of-living crisis has forced many households to rely on credit cards for essentials like groceries, energy bills, and rent.
• Managing debt starts with basic budgeting, tracking income and expenses, and reducing unnecessary spending.
• Free debt advice services, such as StepChange, Citizens Advice, and National Debtline, can help individuals build repayment plans and regain control over their finances.

FAQs

What is the average personal debt in the UK?

As of 2025, the average personal debt in the UK, excluding mortgages, stands at approximately £2,400 per adult. When including all forms of household borrowing, such as car finance and student loans, the average debt per person in the UK rises to between £7,000 and £8,000.

How does credit card debt compare to other types of debt?

Credit card debt is the most prevalent form of unsecured debt in the UK, with 43% of Brits reporting having had or currently having credit card debt. The average credit card balance per household is around £2,579, and many individuals carry balances between £1,600 and £1,800. Unlike personal loans, credit cards often come with high interest rates, making them a more expensive form of borrowing.

Which age group carries the most debt?

Individuals aged 25 to 44 typically carry the highest levels of unsecured debt, as this group often faces significant financial pressures, including childcare, housing costs, and student loan repayments. Conversely, those aged 65 and above generally have lower personal debt, often due to mortgages being paid off and fewer dependents.