Consumer debt 'to soar' in February
A bank surveys says consumer debt for February is expected to soar with Britons planning to borrow more than two-and-a-half times as much as they did three months ago.
Research by Alliance & Leicester finds people are intending to borrow an average of £74 each this month compared with £29 in November, when the British Bankers' Association reported a £1.03 billion increase in consumer credit.
Londoners are set to take on the most debt, with people living in the capital expected to borrow £206, the equivalent of 50% of their monthly disposable income.
People in the West Midlands will be advanced £303 or 42% of their disposable income, while East Anglians are set to borrow £141 the equivalent of 29% of the cash they have left over after meeting the bills.
The research found that on average people's disposable income once bills, and mortgage and borrowing repayments had been made, will be £402 in February.
This figure is a 21% increase on November's £333, and a 40% jump from the £287 people had left over in July, which A&L put down to interest rate cuts reducing people's mortgage repayments.
According to the survey, men's disposable income this month is more than double that of women's, with cash left after bills standing at £524, compared with £245 for women.
But at £133 men are also planning to borrow a lot more than women, who are set to accrue debt of £14 during February.
However, the survey found that only 35% of respondents were planning to borrow money.
During February 57% of those questioned were planning to save, though the majority of that figure were planning to put away less than £100.
ananova.com
Note from PB: Our commercial TV is flooded with adverts to borrow money. I have credit cards and use them quite a bit, but keep um with a slight positive balance. My mail is flooded with new credit card applications. So much so, I have started to send the contents back in the postage paid envelop. Just helping the economy -g- |
