News- Higher interest may push more people over the edge
London (ask4loan) 4th May, 2007: More than 30,000 people have fallen prey to bad debts only in England and Wales in the first quarter of the year. A growing number of Britons are yielding to the rising borrowing and living costs.
The figures show that personal insolvencies increased by almost 25% a year ago to 30,075 in the first quarter. It has for the first time crossed a quarterly total of 30,000.
Commenting on the scenario, George Buckley, an economist at Deutsche Bank said: "The increased numbers of personal insolvencies are surely symptomatic of deteriorating affordability, in particular, the combination of rising debt levels, higher borrowing rates and weak household income growth".
With a hike in interest rate apparently imminent, bad credit loan market could be expected to see a rise in the borrowing.