Neil Munroe, external affairs director of credit rating firm Equifax, said that UK debt stands at £1.2 trillion and consumers spending, with a buy now pay later mentality, added to this growing problem.
A sign of this is that a fifth of bankruptcies are for those aged under 30, meaning that debt is going to be a “huge problem” in 2007, the financial expert stated.
Mr Munroe also warned of the danger of identity theft, stating that it has cost consumers billions of pounds and around 27 per cent of people had been a victim of such an act.
This can cost people both through the direct loss of funds and the damage it does to a credit rating.
If consumers are not aware that their identity has been stolen, it can dent their credit rating, meaning that they pay higher interest rates for loans.