Credit Crunch Debt Outlook
Wednesday, April 23rd 2008
The Comsumer Credit Counselling Service (CCCS) says the credit crunch is starting to have an effect on consumer borrowing.
In its annual statistical yearbook, CCCS says the increase in outstanding credit card balances in September marked the end of the steady decline seen over the past two years. It believes this may reflect an increased number of people unable to obtain secured credit and so resorting to unsecured lending.
Meanwhile, it said repossesions as a proportion of the morgages in long-term arrears also reached its highest level on record. Rising interest rates thoughout the yeah put presure on household budgets, however the overall impact is staggered because of the large number of people on fixed rate deals.
CCCS says it is worried about older debtors, who are outstripping their younger counterparts but have more difficulty in getting out of debt problems as they hit retirement.
