Average Briton £33,000 in debt, says report
Article Category: Debt Management Help and Advice
The average British consumer owes £33,000 in unsecured loans, a new report states.
PricewaterhouseCoopers’ Precious Plastic 2008 report claims that the amount owed by UK residents in unsecured loans has risen from £17,000 to £33,000 since 2000.
The document warns that many householders currently in fixed-rate mortgage deals could be facing monthly payment increases of about £140 if they fail to remortgage, which could possibly impact on consumer spending and debt.
An increase in personal insolvencies next year was predicted by the accountancy, attributed to over-borrowing by consumers.
Next year people will find it increasingly difficult to obtain credit as lenders tighten their acceptance policies, the report forecast.
And with credit card net yields after charge-offs at their lowest level since 2000, PricewaterhouseCoopers predicts that "annual fees on cards with become the norm" as providers seek to recoup £4 billion in lost profits.
The Council of Mortgage Lenders had predicted that it will be more difficult to obtain adverse credit mortgages next year following the credit crunch.
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