UK owes more then it makes

The UK economy generates £1.3 trillion each year but a recent study has found that we now collectively owe more than £1.345 trillion.

Although most consumer debt is secured against property and is being repaid over several years there are growing concerns about the amount of unsecured consumer debt and this is leading to worries that Britain's “pay-later” culture could be setting itself up for a fall.

But it may not all be bad news, as the report also takes into accounts debts that are regularly paid back each month on credit cards.

However, the latest report comes hot on the heels of the recent stock market dip caused by the uncertainty that some home owners in the US will be able to meet their mortgage payments in the coming months.

Anyone who is concerned about their ability to stay on top of their finance should act now, before the banks bring in yet more predicted rates rises.