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UK personal debt 'to rise slowly'

By Sarah Engle, Fri 2 Jul 2010 - Published in Loans

It is likely that personal debt will continue to rise in the UK over the next year, according to an expert.

A recent report by Credit Action showed that at the end of May 2010, the total UK personal debt stood at £1,460 billion, showing an increase of 0.9 per cent over the past 12 months.

Commenting on the findings, lovemoney.com head of consumer finance Ed Bowsher said the level of debt in the country is "shockingly high".

"Individuals owe more than what the whole country produces in a day. The only good news is that debt levels are now rising slowly," he added.

Mr Bowsher pointed out that the base interest rate is currently at a historic low, which has reduced the cost of borrowing, although many people are now worried about getting any further into debt.

The expert concluded that the level of borrowing in the UK is likely to continue to increase over the course of the next year, although he predicted it will rise at a slower pace than was seen before the financial crisis.