Credit crunch 'won't slow consumer borrowing'
Published On 12 December 2007
Despite the recent tightening of the global financial markets, people in the UK will continue to borrow and face debt problems, an industry expert has said.Colin Jackson, director of Baronworth Investment Services, revealed that the global credit crunch was unlikely to slow the pace of consumer borrowing in the UK and could, in some cases, accelerate financial problems.
"People will continue to borrow," he explained. "You get into the spiral … a lot of people now are using their credit card to pay for their mortgage and that is the most awful situation to be in.
"The trouble is once you get into that situation, you run up massive debts, for example on your credit cards.
"If you're using your credit card because you haven't got enough money at the end of the month to pay anyway then you'll run up bill on your credit card and where do you go next?"
Figures from Credit Action show that personal debt at the end of October 2007 stood at £1,391 billion at the end of October.
