Household Debt To Reach £77,000 by 2015

The Office for Budget Responsibility (OBR) has revised its forecast for total UK household debt from £1,823bn to £2,126bn by 2015.  This means that average household debt is projected to increase to £77,309, which is 33% higher than the present level.

Whilst the Treasury is putting the revision down to higher than expected inflation, some are seeing the increase as evidence that public sector deficit reduction relies on debt being transferred to the private sector.

Senior economist at IPPR thinktank, Tony Dolphin, said: "As tax increases and public spending cuts squeeze households' disposable incomes, they will be forced to take on more and more debt in an attempt to maintain their living standards”.

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