Expert predicts growth in ‘higher cost credit’

There is likely to be a growth in the use of higher cost credit around the UK in months to come, one expert has asserted.

According to Chris Tapp from the Credit Action charity, the difficulty consumers will have in gaining credit will lead many to resort to relatively costly sources of borrowing.

In general terms, Mr Tapp has claimed that the rate of borrowing nationwide will slow roughly in line with the anticipated decrease in economic growth.

“Credit is less widely available so what we will see is a certain amount of growth in higher cost credit,” he said.

Mr Tapp’s comments follow the release of data from Credit Action that showed the average British household is already paying out thousands of pounds in interest on an annual basis in their efforts to become debt free.

Meanwhile, figures from Debt Help have indicated that the majority of all credit cards in use across Europe were issued to British consumers.