A large number of people will prioritise clearing their debts over the next 12 months, it has been suggested.
Speaking at the conference of travel association Abta this week, the chief executive of Hoseasons Richard Carrick indicated that he believes predictions of an economic recovery in the next year are naive as taxes and unemployment will likely continue to rise and expenditure will fall.
The Press Association quoted him as saying: “People are … carrying high levels of personal debt that built up through sustained borrowing and their focus is on cutting back and clearing debt, rather than spending.”
Higher levels of debt were cited by IHS Global Insight chief UK economist Howard Archer last week as one of the reasons why many people are working to improve their finances by paying back money owed on mortgages and other loans.
He told the Times the “worrying” position of the economy was also having an impact.
By Chris Trimble