Dean Statham - Chartered Accountants in... -
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Published on: 3/12/2006
Last Visited: 3/12/2008
Martin Williamson, licensed Insolvency Practitioner and a Director of DS Insolvency Services (DSIS), in Newcastle-under-Lyme, says that there is increasing evidence that levels of credit are approaching unsustainable levels.
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"This reflects the ridiculous ease with which credit can still be obtained by individuals, either through credit and other cards, loans or by remortgaging house equity to spend", said Mr Williamson.
Six months ago, he pointed out, average personal debt (excluding mortgages) was estimated at more than 120% of net income.With yet another interest base rate rise, to 4.25%, individuals and families with a high debt burden would now be facing tremendous pressure on their finances.
"This problem will only get more difficult in the future and there is a danger that the DTI statistics are the tip of the iceberg because many individuals with severe debt problems seek help from unregulated debt advisors who may not provide full and proper advice on alternatives to debt management", he added.