‘Debt worries could mount’ as people find it difficult to obtain credit

Individuals could face debt difficulties in the future as many people are finding it increasingly hard to obtain credit, an industry figure has suggested.

Mark Huggins, director of AA Financial Services, warned that the British public has become split between those who are able to get it and those who only can at a price, or not at all.

Speaking of such polarisation, he said: “The credit market trend is increasingly disenfranchising large numbers of the population.”

Mr Huggins is to present his thoughts to the Institute of Economic Affairs at a conference today (March 23rd).

He believes that the financial services industry must work harder to resolve the issue as a lack of action would only lead to further customer dissatisfaction.

Earlier in the month, Liberal Democrat shadow chancellor Vince Cable announced that debt fears in Britain may persist as the economy is still in a state of “worrying uncertainty”.

By Joe Shervin

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Read in the ClearDebt blog why more people are now in debt but owe less.