According to accountatns Grant Thornton, the total amount of outstanding debt amassed through mortgages, loans and credit cards rose by 7.3 per cent to £1.44 trillion over the year to June 2008, up from £1.35 trillion the previous year. UK GDP is estimated to be £1.41 trillion, having increased by just 5.1 per cent in nominal terms over the past year.(source: independent) This means UK personal debt exceeds total GDP. With GDP falling by an estimated 4% in 2009, this ratio of debt to GDP is only likely to get worse
Furthermore the fall in house prices have increased the ratio of debt that is not secured against the value of housing.
Growth of UK Personal Debt
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Interesting figures and projections -We were told that the general public were in fact reducing their debt, obviously not quickly enough.
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