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Brits 'owe more than UK produces'

By Sarah Engle, Fri 30 Jul 2010 - Published in Loans

The UK's residents now owe more than the country's whole economy produces in a year, new figures have shown.

According to the UK Debt Statistics - August 2010 report by Credit Action, the country's total personal debt reached £1,457 billion at the end of June and held a 12-month growth rate of 0.8 per cent.

In June, total lending in Britain rose by £600 million, as secured lending increased by £700 million but consumer credit fell by £100 million.

The report also showed that the average household debt currently stands at around £8,650 excluding mortgages. However, if mortgages are taken into account, this figure rises to £57,809.

Furthermore, the study, which is based on analysis of Bank of England data, claimed that £67.3 billion has been spent on interest repayments on personal debt over the last 12 months.

Recent research from Confused.com claimed that the average Brit spends £2,802.84 a year repaying credit cards or loans.