£2,556 - average sum owed by Mancs in loans

THE amount owed by people in Manchester in unsecured loans has jumped by more than a tenth in just two years. Across the UK, unsecured borrowing is at its highest level on record, with the Office for National Statistics blaming rising debt for stalling happiness levels.

In Manchester, unsecured borrowing, such as credit cards, overdrafts, personal loans and hire purchase agreements, jumped 14 per cent from an average of £2,243 per person in 2015 to £2,556 per person in 2017.

In other parts of Greater Manchester], unsecured borrowing jumped by 16pc in Salford to an average of £3,740 per person, while it was up 15pc in Rochdale to £3,859, and up 15pc in Trafford to £4,420.

Overall consumer debt, which includes mortgages, has seen much smaller rises in Greater Manchester, according to the data supplied to the ONS by credit agency Equifax.

Salford has seen the biggest increase in consumer debt, up 6pc from an average of £18,684 in 2015 to £19,864 in 2017, while Oldham saw the smallest rise in debt levels from £18,067 to £18,406. Looking at individual mortgage accounts, households in Trafford owed the most in 2017, at an average of £116,796 per mortgage, with the smallest outstanding mortgages in Wigan at £69,469.

The ONS found earnings grew by 0.8pc in the year to Quarter 3 2018, after being adjusted for inflation, and household disposable income was up 0.7pc – meaning individuals had more to spend on goods and services such as restaurants and recreation activities than previously. Comparing the years ending September 2017 and September 2018, average anxiety ratings decreased across the UK, which may be linked to falling unemployment, as well as good health and being in positive relationships.

The average ratings of the other three measures of personal wellbeing – life satisfaction, happiness and worthwhileness – have been levelling off over the past year.

Since Quarter 1 (Jan to Mar) 2013, household debt per head has been increasing, and is now 133% of disposable income. Combined with spending per person outgrowing disposable income by £119 since Quarter 2 (April to June) 2016, the ONS says this supports previous analysis suggesting that some households may be living beyond their means.

Unsecured lending is growing faster (up 1.9pc in a year) than household disposable income (up 0.7pc). On average, people across the UK owed £6,009 in Quarter 3 of 2018 – the highest amount since records began in 2001. Head of Inequalities at the ONS, Glenn Everett said: “Despite high levels of employment, rising incomes and spending across UK households, people are not reporting increases in their wellbeing. This may be due to worries about rising debt repayments, which could be driving concerns about their future financial situation.”