UK debt ‘may stall recovery’

Personal debt levels in Britain could mean that consumers in the country find it difficult to return to a positive economic state, it has been suggested.

According to Peter Sargent, president of R3 – an insolvency trade body – the UK could be left lagging behind countries such as France and Germany if people fail to pay off their most expensive debt and continue borrowing.

He likened the debt levels in the country to a “ball and chain”, adding: “What seems to be happening is that people are borrowing on their credit cards and paying off mortgages, which is wrong because credit card debt costs more to service.”

Mr Sargent’s comments follow research by, which revealed that although more people are paying off non-mortgage debt, over a quarter of people are taking on more debt.

The report also found that 14 per cent believed that debt would always be part of their lives.

By Sarah Adie


Tell others:


By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.