Britain Sinking Deeper Into Debt As More Consumers Buy On High-Interest Credit

Industry News | 05/12/19

An analysis of recent statistics suggests the UK may be recreating conditions that led to the financial crash ten years ago. Far from resolving the problems caused by irresponsible borrowing and lending, the policies pursued since 2009 seem to have facilitated rising debt levels – both secured, and unsecured – in the UK household sector, as well as the public sector. Of added concern is that the interest rates on unsecured credit card debt and amounts lent have increased sharply, despite official interest rates being so low. Banks and financial firms have been rebuilding their strength, but financial resilience of UK individuals has been deteriorating. This is being further compounded by retailers using credit as an additional source of short-term profit, urging customers to buy now, pay later, without checks on affordability of interest payments.

Source: Pensions and Savings