UK personal debt 'preventing exit from recession'

High levels of personal debt in the UK may be hindering the nation's ability to recover from the global economic downturn, it has been suggested.

Commenting after gross domestic product figures for the third quarter of 2009 indicated that the UK remains in recession, Howard Archer, chief UK and European economist at IHS Global Insight, said many consumers were unable to contribute further to the economy.

He stated that UK households "are pretty highly indebted" compared to a lot of other countries, helping to explain the lack of spending at present.

"We have been particularly hard hit by the financial crisis," Mr Archer added – comments which may encourage some consumers to seek advice on debt.

The Office for National Statistics reported 0.4 per cent contraction in the economy between July and Septembers, despite many commentators predicting a return to growth.

Now at six quarters in length, the current recession is the longest since records began in 1955.

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2009-10-27 12:39:07 © Moneyextra.com