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UK consumer debt levels have increased for the seventh month in a row as the outlook for household finances worsened.

This is according to the latest Markit Household Finance Index . Over a third of respondents to Markit's monthly survey stated that their household finances had worsened in October. In comparison only 7% claimed to have experienced an improvement in their financial situation. Debt levels have risen for the majority of respondents with only those in the survey's highest income group seeing an overall debt reduction.

Senior economist at Markit, Tim Moore, said ‘Household finances were once again gripped in a vice of subdued real incomes and heightened job insecurity in October. Weak labour market conditions, combined with the elevated inflationary pressures, have made rising debt and falling willingness to spend recurring themes this year. October was no exception, with these unwelcome trends especially prevalent among public sector employees and the lowest income groups.'

Unsecured borrowing reaches seven month high 

In other news total unsecured debt rose to a seven month high in September according to latest figures published by the Bank of England.

An unsecured debt is any loan or borrowing that isn't linked to a person's assets such as their home. Personal loans and credit cards are common types of unsecured borrowing. In the month of September the amount of unsecured debt rose by £629m to £208.6bn. This is compared to a £478m increase from July to August.