Credit card and loan debt ''holding country back''
07 September 2009
A financial expert has suggested that debt from loans and credit cards accrued by the UK public could be holding the country back from recovering from the recession.
Recent figures from the Bank of England show public lending fell by £600 million in July - representing a net repayment.
However, the total UK loan and credit card debt remained at £1,458 billion as of June.
Commenting, president of insolvency trade body R3, Peter Sargent, explained the level of borrowing could curtail any chances of a swift post-recession recovery.
"Other European economies like France and Germany may well be coming out of the recession already and appear to be recovering fairly rapidly but the UK economy could be left behind," the expert predicted.
He stated the "ball and chain" of debt could be one of the main factors in the UK''s slow recovery.
Mr Sargent added consumers could help the economy recover by focusing on paying off more expensive debts like credit cards or the costlier loans.
Useful Links and Frequently Asked Questions
Loans
Debt Management
Financial News
Faq's