More affordable credit options needed to avoid crippling debt

Mon, 05 Sep 2011

Britain needs more affordable credit options to help stop the rising level of debt, which is expected to reach £2.1 trillion in the near future.

This is according to Consumer Focus, which believes that those on low incomes need more support to help them avoid debt.

The watchdog has published a new report that looks at high-cost financial deals and examines economic inclusion in nations such as France, Germany and Australia.

It hopes to use the information to help the UK learn lessons from overseas systems and has identified the need for British banks to learn from their foreign counterparts and follow their lead to offer affordable credit to those who need it most.

Consumer Focus financial services expert Marie Burton said: "High cost credit can be crippling and can lead some people into a debt trap it is difficult to escape from.

"A cocktail of falling incomes and increasing living costs could lead to more people using high cost credit to fill the gaps and falling into trouble."

Meanwhile, the National Housing Federation recently claimed that homeownership is on the decline thanks to Britain's financial landscape.
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