The scale of so-called distressed borrowing is likely to increase across the country in months to come, it has been claimed.
According to Howard Archer from the Global Insight research firm, more and more British consumers will turned to credit card debt and other forms of unsecured borrowing in order to meet their everyday living expenses.
Mr Archer maintains that while the ongoing economic downturn will see more people start saving, many will be unable to do so and will instead be forced to add to their
debt management burden just to get by.
“There is also likely to be higher distressed borrowing over the coming months, as people struggle in the face of higher food prices and utility bills, as well as increased mortgage payments,” he said.
Moneyexpert recently claimed that more than one-third of adults in the UK are worried about their debt levels.
By Dan Mather