How Safe is the Nations Debt?

A recent study by the bank shows that although we are a nation in debt, it is well managed and likely to be secure debt. Household debt has doubled since 1999 but the survey shows repayment problems pose less threat to the economy than they did in the 1990's.

We are sitting on a debt pile worth more than 1 trillion pounds but most of this is secured against property. Unsecured borrowing has fallen over the last year quite dramatically.

Fixed-rate mortgages are becoming increasingly popular and this also helps shield the economy from fallout from higher rates. Three quarters of new mortgages are now fixed rate, which is up from less than half two years ago.

A study from the Alliance and Leicester shows that the vast majority of UK households have very manageable debt levels and very few are living beyond their means.