For some credit consumers in the UK the consequences of borrowing money can be worse than being handed a prison term, according to one personal finance expert.
David Kuo, from the finance information firm Fool.co.uk, suggests that while poor debt management does not leads to a spell behind bars the consequences can be “much worse than that”.
Mr Kuo’s comments came in response to Fool.co.uk research showing that millions of borrowers around the UK are underestimating by several years how long it will take them to become debt free.
He said: “It is worrying to learn that two out of three people have taken on debts without fully understanding what is involved or how long it will take to repay the loan.
“For many, borrowing money is as easy as walking through a doorway. But it’s a good idea to ensure that you have a way out before the door slams shut.”
Accountancy firm KPMG predicted earlier this year that there would be enough Britons declared insolvent this year to form a human chain “through the Channel Tunnel and back again”.