UK debt worsens

For the second year running the amount of personal debt in the UK has surpassed the gross domestic product (GDP) of the country, figures from Grant Thornton have revealed.

In the last 12 months, debt has worsened in the UK to the tune of 7.3 per cent, the accountancy firm found.

Totalling £1.444 trillion, UK consumers have racked up debts in mortgages, loans and credit cards.

"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," Chief economist at the firm Stephen Gifford remarked.

He added that while this is a "growing problem", there is "no cause for panic".

Responding to the economic slowdown, Which? revealed that many middle class consumers are intending to cut down on their spending over the next year, the Independent reported.

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