UK Personal Debt

May 13th, 2009 | debt-

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.