Rising debts with increase in loans and mortgage payments
17/12/08
Research from the Bank of England showed that consumers are finding it increasingly hard to make ends meet with a combination of less disposable income available to spend and rising debt. This has led to people applying for more loans than usual and high credit card use. Many households are also struggling with meeting their mortgage payments.
The survey carried out by the Bank of England commented that “The typical household reported that the income it had available after meeting household bills had fallen over the past year, and that it had saved less than it had expected. More households were finding their debts to be a burden than in similar surveys carried out since the mid-1990s.”
Households were mainly finding it difficult to repay loans as a result of bills being higher than anticipated. Around fifty per-cent of households said that their disposable income had been reduced by September of this year commenting that they had around one hundred pounds less to spend.
