Tuesday 8th May 2007
Despite interest rate hikes raising the cost of borrowing and more increases on the cards, the latest Personal Credit Index survey from CreditExpert.co.uk shows that people are still happy to get into high levels of debt.
More people would be concerned about getting into debt than they would being caught using illicit drugs or going through a divorce, with one in five people saying bankruptcy would be the most embarrassing thing that could happen to them in life.
Yet it appears that consumers are supremely confident that they can control their finances, as around six million Brits would not worry about their debt levels until they owed over £15,000.
One in 20 of these would only be concerned if they owed over £50,000, excluding a mortgage.
Furthermore, 54 per cent of people reported being 'comfortable' with their credit levels and 41 per cent said they were 'very comfortable'.
Jim Hodgkins, managing director of CreditExpert.co.uk, commented: "The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight, but the 'credit comfy' generation seems to have become anaesthetised to the real implications of mounting debt.
"While many still see big debt as socially unthinkable, the reality is that an increasing number are finding it difficult to gauge when debt tips over to being unmanageable. With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiralling out of control."
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