Personal Debt Exceeds Income

Personal UK debt has outstripped the amount of income generated for a second year running. According to a report by Grant Thornton, the total amount of debt owed through mortgages, credit cards and loans rose by 7.3% throughout the year, whereas the gross domestic product (GDP) rose by only 5.1%.

Our personal debt levels now stand at £1.444 trillion which should mean that many people are beginning to question their debt management issues.

Stephen Gifford, Grant Thornton’s chief economist, said: “Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates… the figures clearly illustrate the continuing problem of growing personal debt levels in the UK.”