British consumers 'will still borrow'

Tue 11 Dec 2007 2pm

The impact of the credit crunch is unlikely to prevent people in the UK from borrowing money, an expert has predicted.

With the culture of easy access to credit now well established in British society, Colin Jackson of Baronworth Investment Services said that consumers will "continue to borrow" despite the recent economic turmoil.

The director of the financial advisory firm expressed concern about the high level of credit card borrowing in the UK and, in particular, the growing trend for homeowners to make mortgage payments using their cards.

Describing it as "the most awful situation to be in", Mr Jackson asked: "If you're using your credit card because you haven't got enough money at the end of the month to pay anyway, then you'll run up bill on your credit card and where do you go next?"

He said that seeking new forms of borrowing to cover existing commitments simply results in a "spiral" which can easily lead to "massive debts".

According to figures from Credit Action, total personal debt in the UK stood at £1,391 billion in October this year.

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