Index reveals worsening personal debt levels in Northampton

The latest UK Personal Debt Index (PDI) shows average debts in Northampton rose to £52,232 in the three months leading up to July, compared to the previous quarter when it stood at £18,577, a 281 per cent increase in the second quarter of 2018.

This is in comparison with the national average, which stands at £16,250 as of 30 June 2018.

Taylor Flynn, head of marketing at Creditfix, said: “Once the dust has settled after the financial strain of Christmas, summer spending often starts sooner than people may think, which could explain this increase in debt.

"People start planning holidays and sunny trips away months in advance, so it’s no surprise to see behaviours such as overspending or relying on credit to put these plans in place.

“It’s certainly a worrying trend, especially if it continues into the next few months.

"On top of this initial debt, spontaneous purchases throughout summer can only add to the overall amount owed by individuals in Northampton."

The PDI is compiled by Creditfix, a personal insolvency practice, following a survey of over 60,000 people across the UK.

Unsecured debt refers to any debt that is not protected by a guarantor or asset, and includes bank loans, credit cards and payday loans.

In spite of the concerning figures, Mr Flynn said there is a positive to the statistics.

"Although people are now coming to us with more debt, we should take comfort in the fact that they are accessing financial help in the first place," he added.