Personal insolvencies could start rising again next year as higher mortgage payments cause strain on over-indebted consumers, according to a new report. Financial Times, Daily Telegraph
A new study by PwC says consumer indebtedness has more than doubled since the start of the millennium. It says people are faced with mounting debts with the average adult owing £33,000 compared to £17,000 in 2000.
The Precious Plastic 2008 report found that consumers coming off fixed-rate mortgage deals arranged two years ago could now see their average monthly repayment jump by about £140 when they remortgage.
It says the credit squeeze has led to more expensive mortgages and says this in turn could lead to cash-strapped consumers using credit cards to help pay for basic living costs.