Londoners 'in most amount of debt'

23 October 2007

New report shows Londoners have most UK debt

Londoners have the largest amount of debt in the UK, according to a new report.

It comes as a survey shows consumers are borrowing more and more money.

Residents of six areas in Greater London have the biggest debts, according to the survey by credit reference agency Callcredit.

And they are followed by people living in Liverpool and Birmingham.

East London tops the table, but the survey suggests a "borrowing boom" is taking place across the whole country.

The figures come after the German think-tank Policy Exchange found that UK personal debt has rocketed by 137% since June 1993, meaning it is greater than annual GDP for the first time.

Owen Roberts, head of Callcredit Consumer, said: "Despite the recent credit crunch, consumers seem to be borrowing more and more, especially in the capital.

"This goes to further illustrate that the increasing cost of living in London isn't being matched by corresponding salary increases, which leaves people relying more on credit than on savings."