Legacy of debt 'will continue to haunt UK consumers'
Published On 26 June 2007
Even if debt and credit card borrowing has peaked in the UK, there is still a "legacy" which means that people will still face financial difficulties in the future, an industry expert has warned.A recent report from the British Bankers' Association (BBA) suggested that credit card borrowing the UK was steadily decreasing as interest rate increases filtered through to consumers.
However, James Falla, the managing director of debt consultancy Thomas Charles, said debt is still a major problem for many people and this will continue to be true into the future.
"Perhaps the message is starting to get through [and] additional borrowing is starting to reduce," he explained. "But let's not get too comfortable, because what about all the legacy of borrowing that's already happened.
"It's the legacy of the last 15 or 20 years of lending that we are now dealing with."
"I certainly would applaud any good work that people are doing perhaps in terms of not borrowing more, and trying not to be too obsessive in their borrowing, but they have already borrowed."
At the end of April, Credit Action reported that consumer debt in the UK topped £1.3 trillion.
