Britons ‘at 25-year high’ debt risk
Britons are facing a debt risk greater than any in the past 25 years, it has been suggested.
Adrian Coles, director general of the Building Societies Association (BSA), warns that affordability has reached a low point not seen for a quarter of a century.
His comments follow the publication of figures by the BSA which suggest many consumers are struggling to save money in the wake of a series of increases in the base rate of interest.
“The rate rises have provided sunnier news for some savers, although many households are not able to take advantage of better rates as higher rates mean paying more on debt.
“In addition, 2006 saw the lowest rise in disposable income since 1982,” the spokesperson claims.
Investment in the form of individual savings accounts was seen to decrease by £62 million year-on-year to total some £404 million in May 2007.
Building societies in the UK currently hold about £200 billion of savings, according to the BSA.
Those wishing to add to this figure could see their affordability concerns improved by seeking debt advice.
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