Debt-management experts have sent out a warning citing “dangerous debt trends” currently plaguing British economy which resemble the conditions during the global financial crisis.
With insolvency rates rising for the first time since 2008, Bell & Company are warning of the reasons behind this worrying trend and how to avoid falling into financial trouble.
The credit crash of 2008 was partly caused irresponsible businesses lending money to consumers who didn’t have the ability to afford the repayments on what they were being lent. Worryingly, similar symptoms are now affecting the modern-day economy.
Britain’s overall consumer debt, which includes borrowing on credit cards, recently rose by ten per cent. This took the country’s outstanding stock of consumer debt over the £200bn ($260bn) mark for the first time since the global credit crash of 2008.
James Bell, Bell & Company Managing Director, said: “These figures are extremely concerning. What we’re seeing is a repeat of what happened after the global financial crisis of 2008 when many people were facing huge financial difficulties.
“The amount of people becoming insolvent, or unable to pay back the debts that they owe, has risen for the first time since 2009 and in the first half of 2017 it was a tenth higher again.
“Many people are being tempted to borrow more than they can manage because of irresponsible lending, so we’d urge anyone with outstanding debts to exercise caution on what they’re borrowing and make sure they can pay back what they owe to avoid becoming insolvent.”
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