Tuesday 9th of November 2010
The total debt the UK is in could top £10 trillion by 2015, a figure more than five times the expected gross domestic product (GDP) of £2 trillion, research has shown.
According to PwC, the country's financial situation has worsened over the past decade, as the amount Britain is in the red by had accelerated to 5.4 times the national income by 2009 - with the UK debt to GDP ratio still increasing during the recent recession.
Chief economist at PwC John Hawksworth stated: "The UK's addiction to debt has reached alarming levels during the past decade."
He added the estimated figure of £10 trillion in the red would place a heavy burden on the UK economy, "particularly with interest rates likely to rise significantly at some point over the next five years or so".
Richard Doe, chief executive of ING Direct, recently observed research published by his company showed more Brits are now trying to pay off their arrears in an effort to resolve their financial difficulties.
By Kimberley Parsons
