Tuesday, April 5, 2011
More Debt to Beat Debt Problem?
UK households are already the most indebted in the world. Dig down into the detail of the OBR forecasts and things look pretty frightening. Overall household debt rises from Â£1.62 trillion last year to Â£2.13 trillion in 2015, or from 160pc of income to an astonishing 175pc. In other words, consumption growth, a key part of the OBR's overall forecast for growth, is only maintained by taking on more debt.