Credit-happy consumers still confident
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."
Share this..
Related stories
UK economy stronger than previously thought
03/09/2014 The UK economy has grown stronger over the past few years than was previously thought, according to new figures from The Office for National Statistics. The new figures are due to a change in the way The Office for National Statistics (ONS), who are the UK’s largest independent producer of official statistics, calculate the size of Britain’s economy. They now illustrate how t...
Read MoreGovernment extends protection to Icesave customers
The UK government is to cover the deposits of Icesave customers itself, it announced today.Prime minister Gordon Brown has even threatened to sue the Icelandic government - after it apparently backed out of providing compensation to UK savers.Icesave is the UK savings arm of Icelandic banking giant Landsbanki.However, the worsening credit crunch has led to the firm entering administration.This was...
Read MoreMutual funds 'to become more popular'
Investors will prefer mutual funds over other strategies due to the current financial turmoil, a new report claims.According to Strategic Insight, the relative transparency of the instruments, as well as the diversity of their investments, will boost their popularity.This comes despite the recent falls on equities markets, caused by the ongoing credit crisis.In one week earlier this month, the fla...
Read MoreHas Barack Obama joined the Tory camp?
As we move towards the G20 summit, to be held in London from 2 April, it has been confirmed that Barack Obama has arranged a meeting with David Cameron on the Wednesday he flies into London. This is a severe slap in the face for Gordon Brown who has for some time been hanging on to the coattails of the US leader.
There is a suggestion, apparently coming from the US camp, that the US...
The ECB announces Eurozone rate cut
In a move which is expected to at least place a floor under the European economy the ECB today announced a further reduction in Eurozone interest rates from 1.25% to 1%. This is the seventh time that rates have been cut in Europe and is a further reflection of concerns that the Eurozone economy is still very sluggish at best.
There are a number of analysts who expect this latest int...