Debtors may struggle to pay bills
The National Association of Citizens Advice Bureaux has warned that some people with personal debt struggle to pay bills.
In a new survey, the NACAB discovered that nearly a quarter of all people asked are struggling to pay back their debts while around one in five admitted to borrowing money to afford basic living costs.
With one in four people finding it difficult to meet the cost of their bills and debt repayments from time to time, one in ten find it a constant struggle.
This means that a small rise in unemployment or interest rates could have a significant knock on effect on the economy, as it makes the difference between struggling and failing to meet the cost of living.
The report suggests further evidence of consumers borrowing money against the value of their property, and thus keeping the economy afloat while other major nations have sunk into recession.
Previous research by ‘The Mortgage Lender’ indicated that the average Briton has debts of more than £3,000 on top of mortgages, and noted that few planned to pay this off over the coming six months.
