Expert: It's getting more expensive to borrow
Published On 15 November 2007
It is becoming more expensive to borrow money in the UK, meaning that there could be an increase in the number of people seeking financial tools such as IVAs in the future, an industry expert has warned.Chris Tapp, director of Credit Action, explained that "wider economic circumstances" have meant that interest rates have risen and that some of these increases have now been passed onto consumers.
"We are at a point now where borrowing is much more expensive than it was a few years ago," Mr Tapp added.
"People need to think very carefully about how they are going to afford Christmas and how they are going to pay for things in the next couple of months.
"The economy is going to slow down next year. I don't think we're going to see a recession but certainly there will be harder times ahead for some people financially. People need to think about how to prepare for that."
Derek Oakley, insolvency director of Debt Free Direct, added that it was vital that people with debts recognise that they have a problem as soon as possible. He added that people who were "honest" about their situation were more likely to avoid the need for IVAs and other financial tools.
