An interesting statement by a leading city investment bank said that the British were borrowing relatively ‘too little’ and surely had the capacity to borrow more. It went on to even recommend people to opt for more loans and in someway suggested that borrowing could even make them happy!
This obviously came as quite a shock for analysts who’ve already been fretting over the escalating levels of personal debt in the country. According to a report by The Guardian, the British came just second in the list of the highest indebted people in the world, ahead of the Americans and the Australians and followed closely by the Dutch.
Consequently, the report has cautioned consumers against rampant borrowing, considering last year’s debt levels touching £1 trillion for the first time. The stack of debt constituted of about 82 per cent of mortgages, 6 per cent of credit cards and the remaining 12 per cent of other unsecured borrowing. According to the report, debt servicing costs amounted to merely 6.8 per cent of the disposable income which may have happened fairly due to a fall in the interest rates in recent years.
Posted
on : Wed, 16 Mar 2005 00:00 GMT | Loans News
By : Anne Philips
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