Households paying £216 per month on credit card and loan debt

3rd February 2025

Households with unsecured debts (like credit cards and loans) spend an average of £216 a month to repay them according to new research by Hargreaves Lansdown Savings & Resilience Barometer.

The research showed that in debt hotspots, almost 20% of income is being spent on repaying unsecured debts. Excluding student loans and mortgages, borrowers owe an average of £2,687, but in the most debt-laden area of the country, this rises to over £5,535.

It was also found that the more people earn, the more they owe, with households of the top fifth of earners, owing an average of £4,860.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown said “Debt piles have been mounting, and at this time of year we feel the pressure most. The extra cost of Christmas has added to the hundreds of billions of pounds we owe the bank, and repayments are taking a horrible toll on our finances. It’s no wonder that January felt about 11 weeks long.

“These debts aren’t held equally. Partly because it’s easier to borrow when you’re on a higher income, and partly because those on higher incomes are more confident they can afford repayments, the Barometer shows that the more people earn, the more they borrow. Those on lower incomes will tend to fall behind on bills rather than running up major consumer credit debts.

“It’s why the debt hotspots, with the most monumental piles of debts, include richer areas in London – like the City of London, Wandsworth, and Hammersmith and Fulham. Only two areas in the top 10 are outside the capital. It’s also why those with the smallest consumer credit debts are in Wales, including Merthyr Tydfil and Blaenau Gwent, where for many, money is tighter.

“For a clearer picture of those areas where debts are more of a strain, we can look at the percentage of people’s income which goes on debt repayments. This reveals some debt hotspots. There are several within commuting distance of London, including Rochford in Essex and Bromley in Kent. Here, pay is higher than the national average, but outgoings are also high in the commuter belt, and as a result, consumer debt repayments make up an eye-watering 18% of household income in Rochford and 17% in Bromley. The further reaches of the commuter belt, including areas like Fareham and South Bedfordshire, face the same kinds of pressures, with the cost of an even longer commute to factor in.

“Earning more doesn’t make your finances bulletproof. In fact, running a household with higher income, spending and debt, actually makes you less resilient if your circumstances change.”

Debt hotspots: areas with the highest debt repayments as a percentage of income

Local Authority Borough Region Debt repayments as % of income
1 Rochford East 18%
2 Broadland East 17%
3 Castle Point East 17%
4 Central Bedfordshire East 17%
5 Bexley London 17%
6 Havering London 17%
7 Bromley London 17%
8 Sutton London 17%
9 South Norfolk East 17%
10 Blaby East Midlands 17%
11 Tewkesbury South West 17%
12 Mid Suffolk East 17%
13 Maldon East 17%
14 South Gloucestershire South West 17%
15 Huntingdonshire East 17%
16 Stroud South West 17%
17 Pendle North West 16%
18 South Derbyshire East Midlands 16%
19 Kingston Upon Thames London 16%
20 Fareham South East 16%

 

Debt notspots: areas with the lowest debt repayments as a percentage of income

Local Authority Borough Region Debt repayments as % of income
1 Newcastle Upon Tyne North East 10%
2 Pembrokeshire Wales 10%
3 Cardiff Wales 10%
4 Ceredigion Wales 10%
5 Powys Wales 10%
6 Torfaen Wales 11%
7 Wrexham Wales 11%
8 Gwynedd Wales 11%
9 Isle Of Anglesey Wales 11%
10 Monmouthshire Wales 11%
11 Swansea Wales 11%
12 Denbighshire Wales 11%
13 Conwy Wales 11%
14 Blaenau Gwent Wales 11%
15 Newport Wales 11%
16 Kingston Upon Hull, City Of Yorkshire and The Humber 11%
17 Hambleton Yorkshire and The Humber 11%
18 Middlesbrough North East 11%
19 Merthyr Tydfil Wales 11%
20 Scarborough Yorkshire and The Humber 11%

 

Areas with the smallest debts

  Local Authority Borough Region Average unsecured debt (among those who have debts)
1 Merthyr Tydfil Wales £1,783
2 Blaenau Gwent Wales £1,783
3 Swansea Wales £1,863
4 Rhondda Cynon Taf Wales £1,863
5 Neath Port Talbot Wales £1,863
6 Caerphilly Wales £1,863
7 Torfaen Wales £1,874
8 Newport Wales £1,881
9 Newcastle Upon Tyne North East £1,891
10 Gwynedd Wales £1,893
11 Wrexham Wales £1,893
12 Cardiff Wales £1,893
13 Middlesbrough North East £1,918
14 Kingston Upon Hull, City Of Yorkshire and The Humber £1,930
15 Bridgend Wales £1,939
16 Flintshire Wales £1,943
17 Hartlepool North East £1,943
18 South Tyneside North East £1,961
19 Isle Of Anglesey Wales £1,964
20 Carmarthenshire Wales £1,966

 

Areas with the largest debts

Borough Region Average unsecured debt (among those who have debts)
1 City of London London £5,535
2 Wandsworth London £5,280
3 Tower Hamlets London £5,094
4 Hackney London £4,948
5 Hammersmith And Fulham London £4,838
6 Harborough East Midlands £4,832
7 Islington London £4,766
8 Westminster London £4,766
9 Blaby East Midlands £4,612
10 Lambeth London £4,571
11 Southwark London £4,565
12 Camden London £4,565
13 Rushcliffe East Midlands £4,534
14 Rutland East Midlands £4,534
15 South Derbyshire East Midlands £4,472
16 Hinckley And Bosworth East Midlands £4,472
17 Greenwich London £4,449
18 Kingston Upon Thames London £4,449
19 North West Leicestershire East Midlands £4,445