Credit consumers ‘feeling the pinch’

Millions of credit consumers around the UK are feeling the financial pinch after five rises in the cost of borrowing over the past 12 months, one expert has made clear.

Susan Hannums from financial advisory firm AWD Chase de Vere insists that the increases have caused many people to find their debt management problems difficult to contend with.

Indeed, Ms Hannums suggests that the levels of personal debt in the UK has become “completely out of hand” and she encourages consumers across the country to change their spending habits.

“People only tend to become wise to debt when the debt catches up with them,” she said.

“I think that interest rates have gone up and people are feeling the pinch with mortgage rates and debt across the board.”

The accountancy firm KPMG predicted earlier this year that more than 130,000 UK consumers would enter an Individual Voluntary Arrangement by way of a debt solution.