Personal debt in Britain £1.4tn

Personal debt in Britain has reached £1.4 trillion, according to a study by the Centre for Social Justice. Around 3.9 million British families do not have enough savings to cover their rent or mortgage for more than a month, the report says.

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Study: Personal debt in Britain has reached £1.4tn

Personal debt in Britain has reached £1.4 trillion, according to a report by an influential think tank.

According to a study by the Centre for Social Justice, around 3.9 million British families do not have enough savings to cover their rent or mortgage for more than a month.

Rising personal debt has become a "significant problem" for people in Britain, the report warned. Credit: Press Association

More than 26,000 UK households were accepted by councils as homeless in the last five years because of rent and mortgage arrears, including more than 5,000 last year, the think-tank said.

Its report, Maxed Out, said poor people were bearing the brunt of a "perfect storm" of rising living costs, falling real wages, low savings and expensive credit that has seen unsecured consumer debt almost triple in the last 20 years, reaching nearly £160 billion.

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