Britain’s debt problems are looking worse and could have an effect on the economic recovery, one expert has suggested.
Director of charity Credit Action Chris Tapp said the current situation may lead consumers to avoid buying things they cannot afford in the future.
He commented: “We hope these statistics act as a wake-up call to consumers and banks and lenders to try and ensure that as the economy recovers we do things in a way that is sustainable.”
According to the latest figures from the organisation, the UK’s financial standing was “pretty ugly” before the recession and is in many ways worse now, Mr Tapp added.
It is important that individuals and lenders work together to ensure a similar situation does not occur in a decade’s time, he remarked.
Credit Action debt statistics for July revealed that the overall debt in the country amounted to £1,459 billion at the close of May 2009.
By Francis Finch