Consumer Debts Stretch Britain

Consumer debts mainly stemming from credit cards is set to sweep Europe, worried experts are saying.  While the USA is already well within a tough situation with consumer defaults weighing down heavily on banks, the UK is forecast for a similar situation as Europe’s heaviest credit card borrowers.  Around 7 per cent of the $2.5 billion debts are expected to be lost, say analysts.  Hold on to your hats, the storm is not over yet!

Indeed, the argument is still very much out as to the what, which, when and why of the recession.  What consumer debts will do to the overall picture is hard to say.  the leverage of British consumers has been on the rise for at least 10 years but in the last 9 months alone it has been running at around 170 per cent – that is a record high.  (NB: leverage here refers to the amount consumers owe as a propotion of income).

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