As debt management problems spiral out of control for an increasing number of UK consumers, a new report has forecast that the number of Britons being refused credit will rise in years to come.
Research by Datamonitor estimated that around seven million Britons were systematically refused credit during 2006 and this figure is now expected to increase by around 1.6 million by 2011.
The research firm notes that this marks a reversal of the trend in recent years, which has seen the number of British consumers systematically refused credit fall consistently on an annual basis.
Datamonitor refers to consumers who are unable to gain credit from mainstream lenders as “non-standard” and is convinced that there numbers are set to rise as a result of “interest rates going up” and the assumption that “high levels of consumer indebtedness [are] here to stay”.
The financial pressures have increased on many British borrowers facing debt management issues in the wake of five rises in the base rate of interest since August of last year.