Personal debt rising?

Finance

Are we storing up a problem by increasing debt levels?

Car loans, personal loans, credit cards and balance transfers are increasing. Contrasting this with lower household incomes eroded by inflation – it does make me wonder if we are brewing up a problem for the future. Struggling families on low income with high debt levels are already suffering the most.

If the UK is relying on the consumer to help the economy – the increase in personal debt and mortgage borrowing may limit that. If the economy slows or interest rates increase there is a worry that those with debt will have a problem.

Cheap money has encouraged us to borrow and while this has helped the financial recovery – it may now hinder it too!

There is good and bad debt – I will come to that in another post.

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