The overall debt incurred by British consumers has exceeded the income generated by the economy it has been announced today.

Figures released by accountants Grant Thornton have revealed that the overall amount owed by the nation has exceeded £1.444 trillion within a year. The amount encompasses loans and credit card repayments.

Stephen Gifford, Grant Thornton''s chief economist, said: "Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates.

"Although there is no cause for panic as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem of growing personal debt levels in the UK." He added.

The debt industry can rejoice however as the expected applications for IVAs and consolidation policies are expected to rise in 2009 as consumers attempt to regain a foothold on their current financial plight.