Personal loan statistics: Average interest rates and personal loan debt

Personal loans are a type of unsecured loan. This loan is granted based on factors such as a person’s income and credit score rather than being backed by anything concrete.

Brits have been taking out personal loans for decades – to go on a well-deserved holiday, to refurbish their houses, to buy their first cars. But how many people are doing it exactly? And is it more expensive now than it was 15 years ago?

Personal loan statistics: Highlights

• The average interest rate for a £5,000 personal loan is 11.30% as of November 2023.
• The average interest rate for a £10,000 personal loan is 7.15% as of November 2023.
• The average interest rate for a £10,000 loan hit 7.16% in October 2023, the highest APR since at least May 2013.
• £8,032 was the average personal loan debt for a person who sought advice in 2022, higher than other types of unsecured loans.

What is the average interest rate on a personal loan?

The average interest rate for a £5,000 personal loan is 11.30%, and the average interest rate for a £10,000 personal loan is 7.15% as of November 2023. The interest charged on personal loans has varied wildly over the years, with the interest rates on £10,000 loans being consistently lower than those on £5,000 loans.

Average APR for a £5,000 loan

The average interest rate for a £5,000 personal loan has decreased over the past decade and was 0.47 percentage points lower in November 2023 compared to May 2013, when it was 11.77%. The average interest rate was at its lowest in August 2015, when it was just 7.48%, and it has fluctuated since then.

Since May 2022, the average interest rate on a £5,000 loan has been rising steadily, increasing by 3.16 percentage points from 8.14% in May 2022 to 11.30% in November 2023.

There has been some change in the average interest rate throughout 2023, with rates rising by over 1 percentage point between January and November 2023. The biggest change in the average interest rate for a £5,000 loan in 2023 was between March and April 2023, as it increased from 10.04% to 10.33%.

• Graph
• Table

Average APR for a £10,000 loan

The average interest rate for a £10,000 loan has increased over the last decade, going from 6.64% in May 2013 to 7.15% in November 2023. The rate in November 2023 marked the highest interest rate since at least May 2013. Meanwhile, the lowest was in September 2020, when the average interest rate was just 3.37%.

Similarly to the interest rate for £5,000 loans, the interest rate for £10,000 loans began to rise significantly in 2022. The average rate increased by 2.07 percentage points from January to December 2022. The average interest rates for 2023 have stayed fairly consistent at the start of the year, with an interest rate of 5.91% in January and 5.85% in May. However, rates jumped by 1.3 percentage points from May 2023 to November 2023.

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What is the average personal loan debt in the UK?

The average personal loan debt for a person who sought debt advice in 2022 was £8,032. Compared to other types of unsecured debt, the average amount of debt owed was much higher.

Credit card debt was the second highest form of debt in 2022, as the average person seeking advice owed over £6,500 worth of credit card debt. There was also unsecured debt owed for things like payday loans, store credit cards or overdrafts, with the average amount owed for these over £1,000.

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Personal loan write-offs

In the third quarter of 2023, nearly £300 million was written off in personal loan debt, which is a 101% decrease from the beginning of 2017, when only £149 million was written off in personal loan debt.

The highest value of personal loan write-offs happened in the third quarter of 2019, with £456 million of debt written off. The lowest amount during the period from 2017 to 2022 was in the second quarter of 2017, as only £136 million was written off.

2019 had the highest value of personal loan write-offs in a single year during the period from 2017-2021, as £1,583 million was written off. The lowest value of personal loans written off was in 2017, as only £610 million was written off.

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• Personal loan statistics 2022

  Quick overview

  • The latest borrowing statistics from the Bank of England found that in June 2022, the average APR for a £10,000 loan was 4.11% – the highest level since August 2016.
  • The average APR for a £5,000 personal loan rose to 8.2% in June, up from 8.14% in May.
  • The average APR for an overdraft was as high as 35.2% in June 2022.
  • The average total debt is £64,581 per household (including mortgages), which is 7% (£4,218) more than 2020.
  • By postcode area, Northampton (NN) has the highest level of personal loan debt per capita in the UK at £753.
  • This is closely followed by Salisbury (SP), which has a per capita personal loan debt of £750.

  Personal Debt

  Personal debt has increased in 2022, with the UK population owing £1,794.8 billion by the end of May 2022. In 2020, personal debt fluctuated between £1,680 and £1,697 billion.

  The average total debt per household, including mortgages, was £64,581 in May 2022. It has been high since March 2022 (above £64,000). This amount has been increasing every month since January 2020.

  • Graph
  • Table

  Region	2009	2010
  Spain	12.11	11.35
  France	10.51	10.53
  Italy	2.82	2.63
  USA	3.54	3.92
  Rep. of Ireland	4.05	3.83
  Netherlands	2.01	2.05
  Greece	1.99	1.85
  Germany	2.33	2.51
  Portugal	1.91	2.08
  Poland	1.66	1.64
  Turkey	1.72	2.01
  Belgium	1.54	1.66
  India	0.96	1.04
  Switzerland	0.94	1.06
  Romania	0.16	0.18
  United Arab Emirates	0.61	0.59
  Cyprus	1.06	1
  Hungary	0.25	0.31
  Malta	0.39	0.49
  Morocco	0.33	0.35
  Czech Republic	0.47	0.42
  Pakistan	0.43	0.5
  Canada	0.52	0.5

  Interest rates on personal loans

  The interest that is charged on personal loans has varied wildly over the years, with the interest rates on £10,000 loans being consistently lower than those on £5,000 loans.

  £5,000 loans

  In June 2022, the interest rates for a £5,000 loans were at an average of 8.2%. This is higher than the rates seen during the fourth quarter of 2021 and the first quarter of 2022. In 2019, the average was slightly lower at 7.8%, the lowest rate in over a decade. £5,000 loans reached peak interest rates in 2012, with an average of 13.2%.

  • Graph
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  Month	Total write-offs (in £ million)
  Mar 2022	773
  Dec 2021	902
  Sep 2021	982
  Jun 2021	958
  March 2021	1042
  Dec 2020	960
  Sep 2020	940
  June 2020	851
  Mar 2020	386
  Dec 2019	433
  Sep 2019	456
  Jun 2019	353
  Mar 2019	341
  Dec 2018	305
  Sep 2018	342
  Jun 2018	282
  Mar 2018	228
  Dec 2017	140
  Sep 2017	185
  Jun 2017	136
  Mar 2017	149
  Dec 2016	237
  Sep 2016	182
  Jun 2016	182
  Mar 2016	259
  Dec 2015	458
  Sep 2015	190
  Jun 2015	230
  Mar 2015	422
  Dec 2014	253
  Sep 2014	439
  Jun 2014	287
  Mar 2014	214
  Dec 2013	219
  Sep 2013	477
  Jun 2013	194
  Mar 2013	419
  Dec 2012	381
  Sep 2012	445
  Jun 2012	435
  Mar 2012	588
  Dec 2011	425
  Sep 2011	579
  Jun 2011	760
  Mar 2011	858
  Dec 2010	925
  Sep 2010	959
  Jun 2010	1151
  Mar 2010	718
  Dec 2009	1799
  Sep 2009	1024
  Jun 2009	986
  Mar 2009	786
  Dec 2008	865
  Sep 2008	762
  Jun 2008	976
  Mar 2008	641
  Dec 2007	898
  Sep 2007	699
  Jun 2007	1018
  Mar 2007	914
  Dec 2006	1186
  Sep 2006	946
  Jun 2006	821
  Mar 2006	836
  Dec 2005	1597
  Sep 2005	684
  Jun 2005	793
  Mar 2005	512
  Dec 2004	633
  Sep 2004	489
  Jun 2004	593
  Mar 2004	493
  Dec 2003	469
  Sep 2003	524
  Jun 2003	463
  Mar 2003	491
  Dec 2002	542
  Sep 2002	446
  Jun 2002	390
  Mar 2002	524
  Dec 2001	405
  Sep 2001	351
  Jun 2001	331
  Mar 2001	325
  Dec 2000	345
  Sep 2000	253
  Jun 2000	235
  Mar 2000	259
  Dec 1999	394
  Sep 1999	275
  Jun 1999	285
  Mar 1999	266
  Dec 1998	240
  Sep 1998	206
  Jun 1998	205
  Mar 1998	203
  Dec 1997	225
  Sep 1997	252
  Jun 1997	217
  Mar 1997	300
  Dec 1996	316
  Sep 1996	231
  Jun 1996	240
  Mar 1996	279
  Dec 1995	346
  Sep 1995	215
  Jun 1995	181
  Mar 1995	224
  Dec 1994	237
  Sep 1994	198
  Jun 1994	182
  Mar 1994	228
  Dec 1993	304
  Sep 1993	193
  Jun 1993	179
  Mar 1993	267

  £10,000 loans

  The average interest rate for a £10,000 loan in June 2022 was 4.11%, which is reasonably high compared to the last 2 years. From October 2016 up until April 2022, they were under 4%.

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  Month	Total write-offs (in £ million)
  Mar 2022	773
  Dec 2021	902
  Sep 2021	982
  Jun 2021	958
  March 2021	1042
  Dec 2020	960
  Sep 2020	940
  June 2020	851
  Mar 2020	386
  Dec 2019	433
  Sep 2019	456
  Jun 2019	353
  Mar 2019	341
  Dec 2018	305
  Sep 2018	342
  Jun 2018	282
  Mar 2018	228
  Dec 2017	140
  Sep 2017	185
  Jun 2017	136
  Mar 2017	149
  Dec 2016	237
  Sep 2016	182
  Jun 2016	182
  Mar 2016	259
  Dec 2015	458
  Sep 2015	190
  Jun 2015	230
  Mar 2015	422
  Dec 2014	253
  Sep 2014	439
  Jun 2014	287
  Mar 2014	214
  Dec 2013	219
  Sep 2013	477
  Jun 2013	194
  Mar 2013	419
  Dec 2012	381
  Sep 2012	445
  Jun 2012	435
  Mar 2012	588
  Dec 2011	425
  Sep 2011	579
  Jun 2011	760
  Mar 2011	858
  Dec 2010	925
  Sep 2010	959
  Jun 2010	1151
  Mar 2010	718
  Dec 2009	1799
  Sep 2009	1024
  Jun 2009	986
  Mar 2009	786
  Dec 2008	865
  Sep 2008	762
  Jun 2008	976
  Mar 2008	641
  Dec 2007	898
  Sep 2007	699
  Jun 2007	1018
  Mar 2007	914
  Dec 2006	1186
  Sep 2006	946
  Jun 2006	821
  Mar 2006	836
  Dec 2005	1597
  Sep 2005	684
  Jun 2005	793
  Mar 2005	512
  Dec 2004	633
  Sep 2004	489
  Jun 2004	593
  Mar 2004	493
  Dec 2003	469
  Sep 2003	524
  Jun 2003	463
  Mar 2003	491
  Dec 2002	542
  Sep 2002	446
  Jun 2002	390
  Mar 2002	524
  Dec 2001	405
  Sep 2001	351
  Jun 2001	331
  Mar 2001	325
  Dec 2000	345
  Sep 2000	253
  Jun 2000	235
  Mar 2000	259
  Dec 1999	394
  Sep 1999	275
  Jun 1999	285
  Mar 1999	266
  Dec 1998	240
  Sep 1998	206
  Jun 1998	205
  Mar 1998	203
  Dec 1997	225
  Sep 1997	252
  Jun 1997	217
  Mar 1997	300
  Dec 1996	316
  Sep 1996	231
  Jun 1996	240
  Mar 1996	279
  Dec 1995	346
  Sep 1995	215
  Jun 1995	181
  Mar 1995	224
  Dec 1994	237
  Sep 1994	198
  Jun 1994	182
  Mar 1994	228
  Dec 1993	304
  Sep 1993	193
  Jun 1993	179
  Mar 1993	267

  Quarterly personal loan write-offs

  The most extreme year for write-offs was after the financial crisis in 2008-2009, when £3.75 billion was written off in total in 2010. After 2010, the write-off trend started to decrease. In 2019, £1.58 billion was written off.

  In the first quarter of 2022, £773 million has already been written off. From this figure, £270 million was credit card debt, which led to a daily write-off of £3 million.

  If the rest of 2022 follows the first-quarter trend, written-off debt could reach £3.09 billion for the year. This would be almost double the amount written off in 2019.

  • Graph
  • Table

  Month	Total write-offs (in £ million)
  Mar 2022	773
  Dec 2021	902
  Sep 2021	982
  Jun 2021	958
  March 2021	1042
  Dec 2020	960
  Sep 2020	940
  June 2020	851
  Mar 2020	386
  Dec 2019	433
  Sep 2019	456
  Jun 2019	353
  Mar 2019	341
  Dec 2018	305
  Sep 2018	342
  Jun 2018	282
  Mar 2018	228
  Dec 2017	140
  Sep 2017	185
  Jun 2017	136
  Mar 2017	149
  Dec 2016	237
  Sep 2016	182
  Jun 2016	182
  Mar 2016	259
  Dec 2015	458
  Sep 2015	190
  Jun 2015	230
  Mar 2015	422
  Dec 2014	253
  Sep 2014	439
  Jun 2014	287
  Mar 2014	214
  Dec 2013	219
  Sep 2013	477
  Jun 2013	194
  Mar 2013	419
  Dec 2012	381
  Sep 2012	445
  Jun 2012	435
  Mar 2012	588
  Dec 2011	425
  Sep 2011	579
  Jun 2011	760
  Mar 2011	858
  Dec 2010	925
  Sep 2010	959
  Jun 2010	1151
  Mar 2010	718
  Dec 2009	1799
  Sep 2009	1024
  Jun 2009	986
  Mar 2009	786
  Dec 2008	865
  Sep 2008	762
  Jun 2008	976
  Mar 2008	641
  Dec 2007	898
  Sep 2007	699
  Jun 2007	1018
  Mar 2007	914
  Dec 2006	1186
  Sep 2006	946
  Jun 2006	821
  Mar 2006	836
  Dec 2005	1597
  Sep 2005	684
  Jun 2005	793
  Mar 2005	512
  Dec 2004	633
  Sep 2004	489
  Jun 2004	593
  Mar 2004	493
  Dec 2003	469
  Sep 2003	524
  Jun 2003	463
  Mar 2003	491
  Dec 2002	542
  Sep 2002	446
  Jun 2002	390
  Mar 2002	524
  Dec 2001	405
  Sep 2001	351
  Jun 2001	331
  Mar 2001	325
  Dec 2000	345
  Sep 2000	253
  Jun 2000	235
  Mar 2000	259
  Dec 1999	394
  Sep 1999	275
  Jun 1999	285
  Mar 1999	266
  Dec 1998	240
  Sep 1998	206
  Jun 1998	205
  Mar 1998	203
  Dec 1997	225
  Sep 1997	252
  Jun 1997	217
  Mar 1997	300
  Dec 1996	316
  Sep 1996	231
  Jun 1996	240
  Mar 1996	279
  Dec 1995	346
  Sep 1995	215
  Jun 1995	181
  Mar 1995	224
  Dec 1994	237
  Sep 1994	198
  Jun 1994	182
  Mar 1994	228
  Dec 1993	304
  Sep 1993	193
  Jun 1993	179
  Mar 1993	267

  Postcode areas with the highest amount of personal loans per person

  The areas with the largest populations will typically have the highest outstanding amount of personal loans. However, by looking deeper into the data, you can reveal a different story on a per capita basis.

  Rank	Area code	Postcode area	Outstanding balances	Per capita
  1	NN	Northampton	£485.7 million	£753
  2	SP	Salisbury	£170.9 million	£750
  3	RG	Reading	£568.8 million	£744
  4	SL	Slough	£269.0 million	£733
  5	WA	Warrington	£446.0 million	£733
  6	CW	Crewe	£223.6 million	£733
  7	RH	Redhill	£378.5 million	£723
  8	MK	Milton Keynes	£357.7 million	£715
  9	DA	Dartford	£304.1 million	£714
  10	CM	Chelmsford	£453.8 million	£705

  Which regions have the highest amount of outstanding personal loans?

  We looked into how much each region in the UK owes in personal debt. London is unsurprisingly in the lead, with over £6 billion in outstanding personal loans. The South East follows closely in second, with over £5.7 billion outstanding. The North East has the smallest amount of personal loan debt, with just under £1.6 billion.

• Previous research: Personal loan statistics 2020

  Quick overview

  • The average APR for a personal loan of £5,000 is 7.87%. For a loan of £10,000, it’s 3.48%.
  • An overdraft has an average APR of 19.72%.
  • The average debt is £60,363 per household (including mortgages). This is £1,680 billion in total for the whole of the UK.
  • The average credit card debt is £2,595. By making only the minimum payment every month, this would take 26 years and 8 months to pay off.

  Monthly amount lent via unsecured loans, 1993-2020

  • Monthly amount
  • Table

  Month	Total lending (in £ billion)
  Jun 2020	11.97
  May 2020	9.14
  Apr 2020	8.30
  Mar 2020	14.78
  Feb 2020	15.79
  Jan 2020	17.49
  Dec 2019	17.70
  Nov 2019	16.83
  Oct 2019	17.28
  Sep 2019	17.33
  Aug 2019	17.33
  Jul 2019	18.77
  Jun 2019	16.60
  May 2019	17.89
  Apr 2019	17.88
  Mar 2019	17.03
  Feb 2019	15.58
  Jan 2019	17.31
  Dec 2018	16.59
  Nov 2018	17.47
  Oct 2018	17.77
  Sep 2018	15.91
  Aug 2018	17.18
  Jul 2018	17.65
  Jun 2018	16.68
  May 2018	17.18
  Apr 2018	16.44
  Mar 2018	16.04
  Feb 2018	14.68
  Jan 2018	16.62
  Dec 2017	15.34
  Nov 2017	16.60
  Oct 2017	16.20
  Sep 2017	15.60
  Aug 2017	16.14
  Jul 2017	16.21
  Jun 2017	15.79
  May 2017	16.54
  Apr 2017	14.81
  Mar 2017	16.96
  Feb 2017	14.53
  Jan 2017	16.10
  Dec 2016	15.51
  Nov 2016	16.11
  Oct 2016	15.70
  Sep 2016	15.84
  Aug 2016	16.31
  Jul 2016	15.32
  Jun 2016	15.56
  May 2016	15.78
  Apr 2016	15.01
  Mar 2016	15.80
  Feb 2016	14.96
  Jan 2016	14.24
  Dec 2015	15.42
  Nov 2015	15.31
  Oct 2015	14.84
  Sep 2015	15.41
  Aug 2015	14.75
  Jul 2015	15.43
  Jun 2015	15.55
  May 2015	14.20
  Apr 2015	14.24
  Mar 2015	15.53
  Feb 2015	13.20
  Jan 2015	13.97
  Dec 2014	15.51
  Nov 2014	13.76
  Oct 2014	14.67
  Sep 2014	14.02
  Aug 2014	12.80
  Jul 2014	13.74
  Jun 2014	13.39
  May 2014	13.18
  Apr 2014	12.92
  Mar 2014	13.38
  Feb 2014	11.88
  Jan 2014	12.96
  Dec 2013	13.26
  Nov 2013	12.74
  Oct 2013	12.95
  Sep 2013	13.02
  Aug 2013	12.80
  Jul 2013	13.84
  Jun 2013	12.04
  May 2013	12.72
  Apr 2013	12.55
  Mar 2013	11.78
  Feb 2013	10.89
  Jan 2013	11.67
  Dec 2012	12.74
  Nov 2012	12.63
  Oct 2012	13.02
  Sep 2012	11.66
  Aug 2012	12.33
  Jul 2012	12.57
  Jun 2012	11.56
  May 2012	12.35
  Apr 2012	11.63
  Mar 2012	12.13
  Feb 2012	11.11
  Jan 2012	11.92
  Dec 2011	12.38
  Nov 2011	12.24
  Oct 2011	11.89
  Sep 2011	12.08
  Aug 2011	12.73
  Jul 2011	11.97
  Jun 2011	12.15
  May 2011	12.34
  Apr 2011	11.21
  Mar 2011	12.29
  Feb 2011	10.73
  Jan 2011	11.36
  Dec 2010	12.28
  Nov 2010	12.93
  Oct 2010	11.51
  Sep 2010	12.22
  Aug 2010	12.32
  Jul 2010	12.21
  Jun 2010	12.52
  May 2010	11.35
  Apr 2010	11.59
  Mar 2010	12.61
  Feb 2010	10.77
  Jan 2010	10.44
  Dec 2009	11.86
  Nov 2009	11.27
  Oct 2009	10.95
  Sep 2009	11.51
  Aug 2009	10.87
  Jul 2009	12.11
  Jun 2009	12.08
  May 2009	11.02
  Apr 2009	11.31
  Mar 2009	12.18
  Feb 2009	10.48
  Jan 2009	11.44
  Dec 2008	13.22
  Nov 2008	11.71
  Oct 2008	12.80
  Sep 2008	13.30
  Aug 2008	12.24
  Jul 2008	13.73
  Jun 2008	13.17
  May 2008	13.21
  Apr 2008	13.24
  Mar 2008	13.00
  Feb 2008	13.14
  Jan 2008	13.83
  Dec 2007	14.25
  Nov 2007	14.57
  Oct 2007	14.74
  Sep 2007	13.00
  Aug 2007	14.23
  Jul 2007	14.80
  Jun 2007	13.68
  May 2007	14.33
  Apr 2007	13.28
  Mar 2007	13.96
  Feb 2007	12.36
  Jan 2007	14.39
  Dec 2006	13.80
  Nov 2006	14.37
  Oct 2006	14.78
  Sep 2006	13.80
  Aug 2006	14.46
  Jul 2006	14.24
  Jun 2006	14.38
  May 2006	15.21
  Apr 2006	13.13
  Mar 2006	14.70
  Feb 2006	13.35
  Jan 2006	14.88
  Dec 2005	15.06
  Nov 2005	15.40
  Oct 2005	14.99
  Sep 2005	15.04
  Aug 2005	16.08
  Jul 2005	14.72
  Jun 2005	15.47
  May 2005	15.31
  Apr 2005	14.46
  Mar 2005	15.35
  Feb 2005	13.97
  Jan 2005	14.56
  Dec 2004	15.49
  Nov 2004	16.26
  Oct 2004	14.90
  Sep 2004	15.60
  Aug 2004	15.67
  Jul 2004	16.01
  Jun 2004	16.20
  May 2004	14.49
  Apr 2004	14.64
  Mar 2004	16.31
  Feb 2004	14.00
  Jan 2004	14.25
  Dec 2003	15.72
  Nov 2003	14.18
  Oct 2003	15.34
  Sep 2003	15.42
  Aug 2003	14.07
  Jul 2003	16.06
  Jun 2003	14.84
  May 2003	14.11
  Apr 2003	13.80
  Mar 2003	13.70
  Feb 2003	12.60
  Jan 2003	13.95
  Dec 2002	14.32
  Nov 2002	13.27
  Oct 2002	13.85
  Sep 2002	13.32
  Aug 2002	13.54
  Jul 2002	15.07
  Jun 2002	12.38
  May 2002	14.38
  Apr 2002	14.28
  Mar 2002	12.96
  Feb 2002	12.19
  Jan 2002	13.01
  Dec 2001	12.94
  Nov 2001	13.12
  Oct 2001	13.55
  Sep 2001	11.60
  Aug 2001	12.60
  Jul 2001	13.21
  Jun 2001	12.04
  May 2001	12.18
  Apr 2001	11.46
  Mar 2001	11.37
  Feb 2001	10.25
  Jan 2001	11.40
  Dec 2000	10.96
  Nov 2000	11.13
  Oct 2000	11.09
  Sep 2000	10.13
  Aug 2000	11.12
  Jul 2000	10.99
  Jun 2000	11.02
  May 2000	11.36
  Apr 2000	9.52
  Mar 2000	11.07
  Feb 2000	10.22
  Jan 2000	9.72
  Dec 1999	10.66
  Nov 1999	10.79
  Oct 1999	9.64
  Sep 1999	10.19
  Aug 1999	10.01
  Jul 1999	10.03
  Jun 1999	10.05
  May 1999	8.67
  Apr 1999	8.99
  Mar 1999	9.81
  Feb 1999	8.35
  Jan 1999	8.26
  Dec 1998	9.63
  Nov 1998	9.07
  Oct 1998	8.88
  Sep 1998	9.40
  Aug 1998	8.74
  Jul 1998	9.27
  Jun 1998	9.13
  May 1998	8.36
  Apr 1998	8.30
  Mar 1998	8.49
  Feb 1998	7.44
  Jan 1998	7.64
  Dec 1997	8.91
  Nov 1997	7.50
  Oct 1997	8.06
  Sep 1997	7.65
  Aug 1997	7.63
  Jul 1997	8.05
  Jun 1997	7.59
  May 1997	7.17
  Apr 1997	7.54
  Mar 1997	6.47
  Feb 1997	6.27
  Jan 1997	6.59
  Dec 1996	7.39
  Nov 1996	6.66
  Oct 1996	7.13
  Sep 1996	6.67
  Aug 1996	7.03
  Jul 1996	7.36
  Jun 1996	6.29
  May 1996	6.84
  Apr 1996	6.61
  Mar 1996	6.09
  Feb 1996	5.67
  Jan 1996	6.01
  Dec 1995	6.11
  Nov 1995	6.02
  Oct 1995	6.00
  Sep 1995	5.79
  Aug 1995	6.36
  Jul 1995	5.85
  Jun 1995	5.94
  May 1995	5.95
  Apr 1995	5.33
  Mar 1995	5.74
  Feb 1995	4.78
  Jan 1995	5.04
  Dec 1994	5.64
  Nov 1994	5.29
  Oct 1994	4.91
  Sep 1994	5.22
  Aug 1994	5.76
  Jul 1994	4.93
  Jun 1994	5.20
  May 1994	4.88
  Apr 1994	4.55
  Mar 1994	5.06
  Feb 1994	4.13
  Jan 1994	4.28
  Dec 1993	4.97
  Nov 1993	4.69
  Oct 1993	4.29
  Sep 1993	4.80
  Aug 1993	4.97
  Jul 1993	4.57
  Jun 1993	4.70
  May 1993	4.10
  Apr 1993	4.50

  The chart above shows the total amount of money being lent via unsecured loans in the UK each month for personal loans, dealership car finance, short-term loans and credit cards. This monthly total has been generally increasing since the start of this dataset in 1993, despite decreasing between 2004 and 2010. In 2017, a total of £191 billion was lent, an increase of 31% compared to 2012, when £146 billion was lent in total.

  In 2019, the total value of unsecured loans was at its highest ever recorded, at £208 billion. In 2020, a dip emerged due to the coronavirus pandemic, and the amount of money being lent dropped to the lowest rates since 1998. Between January and June 2020, £77 billion was lent out in total. Note that these figures don’t include student loans.

  Quarterly personal loan write-offs

  The amount of personal debt being written off has been relatively low in recent years. The most extreme year for write-offs was after the financial crisis in 2008-2009, when £3.75 billion was written off in total in 2010. After 2010, the write-off trend started to decrease. In 2017, only £610 million was written off.

  In 2019, £1.58 billion was written off, and in the first half of 2020, a mere £390 million has been written off. If this trend continues for the rest of the year, it might be the first year since 2017 where the value of write-offs is below £1 billion.

  • Write-offs
  • Table

  Month	Total write-offs (in £ million)
  Mar 2020	386
  Dec 2019	433
  Sep 2019	456
  Jun 2019	353
  Mar 2019	341
  Dec 2018	305
  Sep 2018	342
  Jun 2018	282
  Mar 2018	228
  Dec 2017	140
  Sep 2017	185
  Jun 2017	136
  Mar 2017	149
  Dec 2016	237
  Sep 2016	182
  Jun 2016	182
  Mar 2016	259
  Dec 2015	458
  Sep 2015	190
  Jun 2015	230
  Mar 2015	422
  Dec 2014	253
  Sep 2014	439
  Jun 2014	287
  Mar 2014	214
  Dec 2013	219
  Sep 2013	477
  Jun 2013	194
  Mar 2013	419
  Dec 2012	381
  Sep 2012	445
  Jun 2012	435
  Mar 2012	588
  Dec 2011	425
  Sep 2011	579
  Jun 2011	760
  Mar 2011	858
  Dec 2010	925
  Sep 2010	959
  Jun 2010	1,151
  Mar 2010	718
  Dec 2009	1,799
  Sep 2009	1,024
  Jun 2009	986
  Mar 2009	786
  Dec 2008	865
  Sep 2008	762
  Jun 2008	976
  Mar 2008	641
  Dec 2007	898
  Sep 2007	699
  Jun 2007	1,018
  Mar 2007	914
  Dec 2006	1,186
  Sep 2006	946
  Jun 2006	821
  Mar 2006	836
  Dec 2005	1,597
  Sep 2005	684
  Jun 2005	793
  Mar 2005	512
  Dec 2004	633
  Sep 2004	489
  Jun 2004	593
  Mar 2004	493
  Dec 2003	469
  Sep 2003	524
  Jun 2003	463
  Mar 2003	491
  Dec 2002	542
  Sep 2002	446
  Jun 2002	390
  Mar 2002	524
  Dec 2001	405
  Sep 2001	351
  Jun 2001	331
  Mar 2001	325
  Dec 2000	345
  Sep 2000	253
  Jun 2000	235
  Mar 2000	259
  Dec 1999	394
  Sep 1999	275
  Jun 1999	285
  Mar 1999	266
  Dec 1998	240
  Sep 1998	206
  Jun 1998	205
  Mar 1998	203
  Dec 1997	225
  Sep 1997	252
  Jun 1997	217
  Mar 1997	300
  Dec 1996	316
  Sep 1996	231
  Jun 1996	240
  Mar 1996	279
  Dec 1995	346
  Sep 1995	215
  Jun 1995	181
  Mar 1995	224
  Dec 1994	237
  Sep 1994	198
  Jun 1994	182
  Mar 1994	228
  Dec 1993	304
  Sep 1993	193
  Jun 1993	179
  Mar 1993	267

  Interest rates on personal loans

  The interest that is charged on personal loans has varied wildly over the years, with the interest rates on £10,000 loans being consistently lower than those on £5,000 loans.

  £5,000 loans

  £5,000 loans reached peak interest rates in 2012, with an average of 13.2%. In 2017, the average was over a third lower at 8.4%.

  Interest rates at the moment are historically low. The rate for £5,000 loans is currently at 7.80%, and it’s been at an average of 7.86% for all of 2020. In 2019, the average was slightly lower at 7.84%, the lowest rate in over a decade.

  • Interest rate
  • Table

  Month	Interest rate (%)
  Jul 2020	7.80
  Jun 2020	7.87
  May 2020	8.04
  Apr 2020	7.83
  Mar 2020	7.91
  Feb 2020	7.87
  Jan 2020	7.70
  Dec 2019	7.92
  Nov 2019	7.93
  Oct 2019	7.88
  Sep 2019	7.80
  Aug 2019	7.88
  Jul 2019	7.82
  Jun 2019	7.90
  May 2019	7.83
  Apr 2019	7.74
  Mar 2019	7.71
  Feb 2019	7.67
  Jan 2019	7.98
  Dec 2018	8.03
  Nov 2018	7.88
  Oct 2018	7.74
  Sep 2018	7.88
  Aug 2018	7.82
  Jul 2018	7.76
  Jun 2018	8.09
  May 2018	8.04
  Apr 2018	8.14
  Mar 2018	7.98
  Feb 2018	8.04
  Jan 2018	8.33
  Dec 2017	8.33
  Nov 2017	8.34
  Oct 2017	8.11
  Sep 2017	8.20
  Aug 2017	7.91
  Jul 2017	8.04
  Jun 2017	7.87
  May 2017	7.76
  Apr 2017	7.85
  Mar 2017	9.54
  Feb 2017	8.81
  Jan 2017	9.45
  Dec 2016	9.49
  Nov 2016	9.07
  Oct 2016	9.06
  Sep 2016	9.59
  Aug 2016	9.13
  Jul 2016	9.19
  Jun 2016	9.27
  May 2016	9.41
  Apr 2016	9.27
  Mar 2016	9.44
  Feb 2016	8.95
  Jan 2016	9.11
  Dec 2015	8.39
  Nov 2015	8.14
  Oct 2015	7.77
  Sep 2015	7.73
  Aug 2015	7.48
  Jul 2015	7.87
  Jun 2015	8.82
  May 2015	8.91
  Apr 2015	8.97
  Mar 2015	8.78
  Feb 2015	8.79
  Jan 2015	8.98
  Dec 2014	8.78
  Nov 2014	8.82
  Oct 2014	8.62
  Sep 2014	9.20
  Aug 2014	9.68
  Jul 2014	9.66
  Jun 2014	9.78
  May 2014	9.86
  Apr 2014	9.86
  Mar 2014	9.75
  Feb 2014	9.72
  Jan 2014	9.89
  Dec 2013	10.08
  Nov 2013	10.90
  Oct 2013	10.36
  Sep 2013	10.30
  Aug 2013	10.11
  Jul 2013	10.91
  Jun 2013	11.15
  May 2013	11.77
  Apr 2013	11.70
  Mar 2013	11.77
  Feb 2013	12.16
  Jan 2013	12.32
  Dec 2012	12.37
  Nov 2012	14.03
  Oct 2012	13.44
  Sep 2012	13.44
  Aug 2012	13.12
  Jul 2012	13.11
  Jun 2012	13.30
  May 2012	13.31
  Apr 2012	13.04
  Mar 2012	13.08
  Feb 2012	12.91
  Jan 2012	13.22
  Dec 2011	13.88
  Nov 2011	13.57
  Oct 2011	13.26
  Sep 2011	13.26
  Aug 2011	13.11
  Jul 2011	13.12
  Jun 2011	13.13
  May 2011	13.18
  Apr 2011	12.96
  Mar 2011	12.02
  Feb 2011	11.79
  Jan 2011	11.78
  Dec 2010	12.04
  Nov 2010	12.44
  Oct 2010	12.38
  Sep 2010	12.26
  Aug 2010	11.63
  Jul 2010	11.77
  Jun 2010	12.19
  May 2010	12.20
  Apr 2010	12.30
  Mar 2010	12.01
  Feb 2010	11.84
  Jan 2010	11.95
  Dec 2009	12.71
  Nov 2009	12.93
  Oct 2009	12.94
  Sep 2009	12.75
  Aug 2009	12.67
  Jul 2009	12.52
  Jun 2009	12.45
  May 2009	12.44
  Apr 2009	12.57
  Mar 2009	12.51
  Feb 2009	12.28
  Jan 2009	12.34
  Dec 2008	12.08
  Nov 2008	12.02
  Oct 2008	11.66
  Sep 2008	11.47
  Aug 2008	11.03
  Jul 2008	10.67
  Jun 2008	10.46
  May 2008	10.41
  Apr 2008	10.52
  Mar 2008	9.76
  Feb 2008	9.87
  Jan 2008	9.91
  Dec 2007	9.77
  Nov 2007	9.93
  Oct 2007	9.81
  Sep 2007	9.09
  Aug 2007	9.08
  Jul 2007	8.93
  Jun 2007	8.85
  May 2007	8.84
  Apr 2007	8.71
  Mar 2007	8.67
  Feb 2007	9.09
  Jan 2007	8.96
  Dec 2006	8.67
  Nov 2006	9.32
  Oct 2006	9.06
  Sep 2006	8.60
  Aug 2006	9.28
  Jul 2006	9.14
  Jun 2006	9.65
  May 2006	9.37
  Apr 2006	9.72
  Mar 2006	9.85
  Feb 2006	9.87
  Jan 2006	10.12
  Dec 2005	10.28
  Nov 2005	10.09
  Oct 2005	9.86
  Sep 2005	10.01
  Aug 2005	10.32
  Jul 2005	11.08
  Jun 2005	11.08
  May 2005	10.96
  Apr 2005	10.92
  Mar 2005	10.92
  Feb 2005	10.76
  Jan 2005	10.85

  £10,000 loans

  Average interest rates for £10,000 loans are the lowest they’ve ever been as well. Since October 2016, they’ve stayed under 4%, and in 2020, the average interest rate is 3.53%. This is 55% lower than the rate’s peak in 2012, when it averaged 7.76%.

  • Interest rate
  • Table

  Month	Interest rate (%)
  Jul 2020	3.48
  Jun 2020	3.51
  May 2020	3.54
  Apr 2020	3.44
  Mar 2020	3.56
  Feb 2020	3.59
  Jan 2020	3.58
  Dec 2019	3.60
  Nov 2019	3.61
  Oct 2019	3.65
  Sep 2019	3.61
  Aug 2019	3.62
  Jul 2019	3.61
  Jun 2019	3.65
  May 2019	3.65
  Apr 2019	3.64
  Mar 2019	3.69
  Feb 2019	3.69
  Jan 2019	3.73
  Dec 2018	3.83
  Nov 2018	3.81
  Oct 2018	3.77
  Sep 2018	3.81
  Aug 2018	3.77
  Jul 2018	3.76
  Jun 2018	3.83
  May 2018	3.73
  Apr 2018	3.81
  Mar 2018	3.8
  Feb 2018	3.82
  Jan 2018	3.85
  Dec 2017	3.85
  Nov 2017	3.81
  Oct 2017	3.78
  Sep 2017	3.74
  Aug 2017	3.79
  Jul 2017	3.79
  Jun 2017	3.76
  May 2017	3.79
  Apr 2017	3.81
  Mar 2017	3.73
  Feb 2017	3.66
  Jan 2017	3.69
  Dec 2016	3.74
  Nov 2016	3.76
  Oct 2016	3.75
  Sep 2016	4.11
  Aug 2016	4.14
  Jul 2016	4.13
  Jun 2016	4.28
  May 2016	4.33
  Apr 2016	4.3
  Mar 2016	4.38
  Feb 2016	4.27
  Jan 2016	4.29
  Dec 2015	4.45
  Nov 2015	4.44
  Oct 2015	4.37
  Sep 2015	4.33
  Aug 2015	4.25
  Jul 2015	4.25
  Jun 2015	4.28
  May 2015	4.33
  Apr 2015	4.34
  Mar 2015	4.41
  Feb 2015	4.51
  Jan 2015	4.8
  Dec 2014	4.93
  Nov 2014	4.92
  Oct 2014	5.01
  Sep 2014	4.96
  Aug 2014	5.12
  Jul 2014	5.13
  Jun 2014	5.23
  May 2014	5.29
  Apr 2014	5.45
  Mar 2014	5.4
  Feb 2014	5.33
  Jan 2014	5.56
  Dec 2013	5.74
  Nov 2013	5.76
  Oct 2013	6.25
  Sep 2013	6.13
  Aug 2013	6.18
  Jul 2013	6.1
  Jun 2013	6.62
  May 2013	6.64
  Apr 2013	6.65
  Mar 2013	6.69
  Feb 2013	6.89
  Jan 2013	6.93
  Dec 2012	7.06
  Nov 2012	7.3
  Oct 2012	7.48
  Sep 2012	7.45
  Aug 2012	7.83
  Jul 2012	7.83
  Jun 2012	7.97
  May 2012	7.93
  Apr 2012	7.9
  Mar 2012	7.92
  Feb 2012	7.84
  Jan 2012	8.61
  Dec 2011	8.86
  Nov 2011	9
  Oct 2011	8.97
  Sep 2011	8.96
  Aug 2011	8.98
  Jul 2011	9.18
  Jun 2011	9.29
  May 2011	9.22
  Apr 2011	8.17
  Mar 2011	8.4
  Feb 2011	8.45
  Jan 2011	8.57
  Dec 2010	8.95
  Nov 2010	9.11
  Oct 2010	9.16
  Sep 2010	9.89
  Aug 2010	9.58
  Jul 2010	9.77
  Jun 2010	9.78
  May 2010	9.71
  Apr 2010	9.74
  Mar 2010	9.65
  Feb 2010	9.54
  Jan 2010	9.77
  Dec 2009	10.65
  Nov 2009	10.77
  Oct 2009	10.83
  Sep 2009	10.43
  Aug 2009	10.45
  Jul 2009	9.84
  Jun 2009	9.87
  May 2009	9.63
  Apr 2009	9.66
  Mar 2009	9.66
  Feb 2009	9.1
  Jan 2009	9.08
  Dec 2008	9.3
  Nov 2008	9.3
  Oct 2008	9.16
  Sep 2008	9.57
  Aug 2008	9.24
  Jul 2008	8.64
  Jun 2008	8.53
  May 2008	8.54
  Apr 2008	8.6
  Mar 2008	7.93
  Feb 2008	7.71
  Jan 2008	7.86
  Dec 2007	7.88
  Nov 2007	7.96
  Oct 2007	7.85
  Sep 2007	7.49
  Aug 2007	7.46
  Jul 2007	7.42
  Jun 2007	7.35
  May 2007	7.33
  Apr 2007	7.3
  Mar 2007	7.16
  Feb 2007	7.23
  Jan 2007	7.16
  Dec 2006	7.13
  Nov 2006	7.17
  Oct 2006	6.94
  Sep 2006	7.02
  Aug 2006	7.53
  Jul 2006	7.48
  Jun 2006	7.09
  May 2006	7.09
  Apr 2006	7.17
  Mar 2006	7.26
  Feb 2006	7.31
  Jan 2006	7.25
  Dec 2005	7.3
  Nov 2005	7.44
  Oct 2005	7.29
  Sep 2005	7.24
  Aug 2005	7.33
  Jul 2005	7.35
  Jun 2005	7.35
  May 2005	7.45
  Apr 2005	7.87
  Mar 2005	9.13
  Feb 2005	8.89
  Jan 2005	8.8
  Dec 2004	8.36
  Nov 2004	8.13
  Oct 2004	7.36
  Sep 2004	7.38
  Aug 2004	7.43
  Jul 2004	7.42
  Jun 2004	7.72
  May 2004	7.75
  Apr 2004	7.67
  Mar 2004	7.91
  Feb 2004	8.01
  Jan 2004	8.06
  Dec 2003	8.42
  Nov 2003	8.35
  Oct 2003	8.4
  Sep 2003	8.44
  Aug 2003	8.63
  Jul 2003	8.73
  Jun 2003	8.82
  May 2003	8.83
  Apr 2003	8.92
  Mar 2003	8.83
  Feb 2003	8.99
  Jan 2003	9.64
  Dec 2002	10.26
  Nov 2002	10.24
  Oct 2002	10.26
  Sep 2002	10.22
  Aug 2002	11.2
  Jul 2002	11.1
  Jun 2002	11.6
  May 2002	11.94
  Apr 2002	11.71
  Mar 2002	11.89
  Feb 2002	11.72
  Jan 2002	11.91
  Dec 2001	11.78
  Nov 2001	12.02
  Oct 2001	11.84
  Sep 2001	12.23
  Aug 2001	12.22
  Jul 2001	11.99
  Jun 2001	11.96
  May 2001	11.76
  Apr 2001	11.68
  Mar 2001	11.7
  Feb 2001	11.79
  Jan 2001	11.92
  Dec 2000	11.85
  Nov 2000	12
  Oct 2000	11.86
  Sep 2000	11.7
  Aug 2000	11.63
  Jul 2000	11.41
  Jun 2000	11.81
  May 2000	11.57
  Apr 2000	11.53
  Mar 2000	11.35
  Feb 2000	11.49
  Jan 2000	11.63
  Dec 1999	11.82
  Nov 1999	11.88
  Oct 1999	12.04
  Sep 1999	11.95
  Aug 1999	12.41
  Jul 1999	12.7
  Jun 1999	12.92
  May 1999	12.93
  Apr 1999	13
  Mar 1999	13.29
  Feb 1999	13.37
  Jan 1999	13.07
  Dec 1998	13.17
  Nov 1998	13.45
  Oct 1998	13.48
  Sep 1998	13.44
  Aug 1998	13.4
  Jul 1998	13.58
  Jun 1998	13.77
  May 1998	13.8
  Apr 1998	13.73
  Mar 1998	13.77
  Feb 1998	13.91
  Jan 1998	14.21
  Dec 1997	13.86
  Nov 1997	14.01
  Oct 1997	14.06
  Sep 1997	13.79
  Aug 1997	13.79
  Jul 1997	13.53
  Jun 1997	13.53
  May 1997	13.44
  Apr 1997	13.5
  Mar 1997	13.95
  Feb 1997	13.94
  Jan 1997	13.79
  Dec 1996	14.1
  Nov 1996	14.15
  Oct 1996	14.13
  Sep 1996	14.04
  Aug 1996	14.45
  Jul 1996	13.87
  Jun 1996	13.88
  May 1996	14.04
  Apr 1996	13.91
  Mar 1996	16.02
  Feb 1996	15.91
  Jan 1996	16.14
  Dec 1995	17.12
  Nov 1995	17.26
  Oct 1995	17.18
  Sep 1995	17.12
  Aug 1995	16.81
  Jul 1995	16.66
  Jun 1995	17.28
  May 1995	17.04
  Apr 1995	17.6
  Mar 1995	17.68
  Feb 1995	17.6
  Jan 1995	17.55

  A decade in personal loans: Yearly figures 2010-2020

  Have a look at the table below to compare average interest rates, total amount lent per year and total write-offs for the past decade.

  Year	Total amount lent	Total write-offs	Average interest rate, £5,000 loans	Average interest rate, £10,000 loans
  2020	£77 billion	£0.39 billion	7.86%	3.53%
  2019	£208 billion	£1.58 billion	7.84%	3.65%
  2018	£200 billion	£1.16 billion	7.98%	3.80%
  2017	£191 billion	£0.61 billion	8.40%	3.80%
  2016	£186 billion	£0.86 billion	9.20%	4.10%
  2015	£178 billion	£1.30 billion	8.40%	4.40%
  2014	£162 billion	£1.19 billion	9.50%	5.20%
  2013	£150 billion	£1.31 billion	11.10%	6.40%
  2012	£146 billion	£1.85 billion	13.20%	7.80%
  2011	£143 billion	£2.62 billion	12.90%	8.80%
  2010	£143 billion	£3.75 billion	12.10%	9.60%

  Sources used

  • The Bank of England
  • The Money Charity
  • The BBA

Click here for more research. For all media enquiries, please contact:

Matt Mckenna
Head of UK communications
T: +44 20 8191 8806