The UK’s debt management burden is worth more than the country’s gross domestic product (GDP), according to analysis by business advisory firm Grant Thornton.
A culture of borrowing prevails around the country and has seen the amount of debts owed by British consumers reach new heights in recent years, experts at Grant Thornton suggest.
Data cited by the company shows that while the UK’s overall debt management burden is worth more than £1,345 billion, the GDP generated by the economy as a whole on an annual basis amounts to around £15 billion less.
“Britain’s huge level of consumer debt is symptomatic of the country’s well established ‘buy now pay later’ culture,” said Stephen Gifford, Grant Thornton’s chief economist.
“We can no longer generate enough yearly GDP to cover the amount we owe and need next year’s income to cover this year’s debts.”
National consumer charity Credit Action reports that Britain’s debt management burden increases by close to £1 million every four minutes.