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| Version 1 | Version 2 |
|---|---|
| UK debt 'double Europe average' | UK debt 'double Europe average' |
| (40 minutes later) | |
| People in the UK are borrowing on average almost twice that of citizens in other western European countries, a report has found. | People in the UK are borrowing on average almost twice that of citizens in other western European countries, a report has found. |
| Unsecured UK lending, such as credit cards, was £216bn (319bn euros) in 2005 - more than a third of all new non-mortgage borrowing in Europe. | Unsecured UK lending, such as credit cards, was £216bn (319bn euros) in 2005 - more than a third of all new non-mortgage borrowing in Europe. |
| The average British resident owes £3,175, business research firm Datamonitor said. | The average British resident owes £3,175, business research firm Datamonitor said. |
| Total UK personal debt, including mortgages, is about £1.2 trillion. | |
| The report, which looks at the market for borrowing via personal loans, hire purchase, credit cards and overdrafts in 16 European countries, said that the UK had an "insatiable appetite for credit". | The report, which looks at the market for borrowing via personal loans, hire purchase, credit cards and overdrafts in 16 European countries, said that the UK had an "insatiable appetite for credit". |
| The average European owed just £1,558 in unsecured debt. | The average European owed just £1,558 in unsecured debt. |
| Borrowing power | Borrowing power |
| In terms of fresh lending, the French came an easy second last year, the report found. | In terms of fresh lending, the French came an easy second last year, the report found. |
| And the Germans were only outdone by the UK in terms of the total size of debt they had accumulated. | And the Germans were only outdone by the UK in terms of the total size of debt they had accumulated. |
| Although the biggest economies dominate the lending market, it is in the smaller economies of Turkey and Greece that non-mortgage borrowing has been rising fastest. | Although the biggest economies dominate the lending market, it is in the smaller economies of Turkey and Greece that non-mortgage borrowing has been rising fastest. |
| After recovering from an economic crisis in 2001, new lending in Turkey rose by 52% between then and 2005, with Greece seeing its unsecured borrowing rise by 29% over the same period of time. | After recovering from an economic crisis in 2001, new lending in Turkey rose by 52% between then and 2005, with Greece seeing its unsecured borrowing rise by 29% over the same period of time. |
| Both those countries also top the league for the speed with which their consumers' outstanding balances have grown. | Both those countries also top the league for the speed with which their consumers' outstanding balances have grown. |
| 'Saturation point' | 'Saturation point' |
| The report points out that one reason for the position of Turkey is that the country has a very undeveloped mortgage market, so borrowing is dominated by unsecured lending, with credit cards being the most popular form. | The report points out that one reason for the position of Turkey is that the country has a very undeveloped mortgage market, so borrowing is dominated by unsecured lending, with credit cards being the most popular form. |
| The opposite is true in Holland, where unsecured credit as a proportion of all lending is just 5%, and where people often expand their mortgages so they can afford to buy things. | The opposite is true in Holland, where unsecured credit as a proportion of all lending is just 5%, and where people often expand their mortgages so they can afford to buy things. |
| But it is in Greece that credit card use is heaviest. | But it is in Greece that credit card use is heaviest. |
| There it accounts for 45% of all unsecured borrowing, compared to 30% in the UK. | There it accounts for 45% of all unsecured borrowing, compared to 30% in the UK. |
| Financial services analyst at Datamonitor, Paul Marsh, said that the UK market was at saturation point so lenders should be looking to Europe if they were to expand. | Financial services analyst at Datamonitor, Paul Marsh, said that the UK market was at saturation point so lenders should be looking to Europe if they were to expand. |
| "The UK is an increasingly difficult place to do business, due to the highly indebted nature of the population," he said. | "The UK is an increasingly difficult place to do business, due to the highly indebted nature of the population," he said. |
| "Yet in other European countries consumers are not as indebted and the markets are not as sophisticated." | "Yet in other European countries consumers are not as indebted and the markets are not as sophisticated." |