UK personal debt 'exceeding the GDP'

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UK personal debt 'exceeding the GDP'

Mon 1st Sep 2008

Personal debt in the UK has overtaken the country's gross domestic product (GDP) for the second consecutive year, it has been reported.

Research by accountancy firm Grant Thornton found that the total UK consumer debt, in mortgages, loans and credit cards, has increased by 7.3 per cent to £1,444 billion from June 2007 to June 2008.

It said that available data shows the UK GDP to be £1,410 billion, an increase of 5.1 per cent over the past year.

Stephen Gifford, chief economist at Grant Thornton, said there is "no cause for panic" as UK personal debt is covered by housing stock, but said the findings show the "continuing problem" of rising personal debt in Britain.

Research by charity Debt Free Direct has shown that personal debt in Scotland is now at £14.27 billion, according to The Herald.

The newspaper reports that the average Scot owed £7848 on credit cards and store cards in 2006, compared to a national British average of £5993.