£1 trillion debt mark looms in days

BRITAIN'S personal debt will top £1 trillion in nine days, it has been claimed. Research by the Liberal Democrats indicates that the figure will be reached on 10 June.

Coincidentally, that is polling day for local and European elections and the day the Bank of England will announce its next decision on interest rates, with another rise widely expected.

The trillion pounds - a million million - includes mortgages, personal loans and credit card debts. It is roughly equivalent to £17,000 for each man, woman and child and almost as much as the country's annual production of goods and services.

The closeness of the milestone has heightened fears that consumers would be unable to cope if economic conditions changed.

LibDem treasury spokesman Vincent Cable said: 'It's very easy to envisage circumstances in which interest rates rise, house prices fall, oil prices continue to go up and inflation rises. Many people could find themselves in difficulty. Up to 80% of the debt is secured on property, which shows how precarious the whole thing is.'