Borrowers ‘facing up to new reality’

Borrowers around the UK are having face up to the new reality that credit has become much more expensive to access, it has been suggested.

According to Jamie Elliott, coordinator at financial inclusion network Transact, Britons are finding their budgets increasingly stretched as they struggle to adjust to life after the credit crunch.

Millions of people around the country are facing serious debt management problems and many are finding that they are unable to budget effectively as a result of their lenders’ tougher approach.

“An increasing number of people are finding that their sums no longer add up,” said Mr Elliot.

“This is compounded by big increases in food costs and energy costs. A large number of people are already, very stretched.”

According to the Credit Action charity, the extent of the UK’s debt woes is forcing one person into insolvency or bankruptcy every four minutes.

Written by Davina Willis