The End of the Credit Growth Approaching

Posted 2008-01-3

Uswitch conducted a study which was supported by the Financial Services Authority (FSA). This study reveals that almost 25% of 44 year old people are worried about their bills due in the New Year. Moreover, these people had no recollection of their expenses in the holiday season.

The statistics show that finances of families are out of their control and the research indicates that repayments in Britain have gone to a record breaking high of 93 billion pounds a year, nearly 12.7 billion over in a single year. What this implies is that, millions of Britons won’t be able to handle paying back their increase debts.

Lenders are placing restrictions and tightening lending policies, and consumers are warned that the end is near of this growing credit that they’ve enjoyed over the last few years.

Uswitch have also found out that almost 25% of adults have admitted to the fact that they can’t cope with their debts, and a grossly large figure of 9.5 million people have gone over their limit on some form of credit, and all this in the past six months.

Further research indicates that nearly 38% of people who had submitted applications for a credit card in the last few months, did not get through.

The ever increasing interest rates have resulted in an increase in mortgage repayments and thus have put a lot of households under pressure. Uswitch indicated that the average annual interest bill per household, which included mortgages had increased by almost 517 pounds over the past year to 3,744 pounds.

uSwitch’s Mike Naylor stated that people with big debts need to act immediately to protect themselves. For a long time now, people have enjoyed easy recourse to cheap credit. Naylor further went on to say, that the recent reduction in interest rates was heading in the right direction, but for those immersed in major difficulties, it’s not going to be of any use.

A mere 13% stated that they would get their act together where their finances were concerned, however almost 26% said that they would in all likelihood go on a holiday or indulge in a hobby.

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