Borrowers set for a 'tough year' in 2008
Published On 18 December 2007
British consumers will face a "tough year financially" in 2007, as many low-interest fixed- rate mortgage deals expire and utility bills rise substantially, it has been claimed.According to independent financial adviser AWD Chase de Vere, the economic climate next year will make it much more difficult for borrowers to save money. Susan Hannums, manager of savings, said that it was most important that consumers move away from a constant reliance on credit.
"I think it's no secret that next year's going to be a tough year financially for a lot of people. It's going to be a bit of a shock I think, for some people," she said.
"It is going to be harder to save, but the thing we need to drum in more than anything else is that we've got to start paying off and get away from using credit all the time. I think that's really what got us here in the first place so we need to think of other methods and hopefully turn things around."
According to research from Credit Action, total UK personal debt stood at £1,278 billion at the beginning of December, 2006. Total secured lending on homes, meanwhile, rose to more than £1 trillion, standing at £1,065.9 billion at the same time, an increase of 11.4 per cent over the previous year.
