Credit card debt rises by £16.1bn
26/01/2012
Topic: Thinking ahead about retirement
Britons could be compromising their retirement prospects by getting into credit card debt as the deficit rose by £16.1 billion excluding write-offs, it was revealed today (January 26th).
Figures from Save Our Savers also showed that consumer debt stood at £1,452 billion in November 2011, a slight decline from 2008’s £1,461 billion deficit.
The body issued the findings in response to the Governor of the Bank of England Mervyn King, who yesterday said: “The increase in households’ borrowing came to an abrupt halt in the 2008/9 recession.”
According to Save Our Savers, this was a misleading statement because despite banks writing off £26.7 billion of consumer debt, total consumer debt rose by £18.4 billion.
Secured lending was also shown to have taken a hike as it increase from £1,226 billion to £1,245 billion, before write-offs of £2.3 billion.
The group supported Mr King’s assertion when he said: “There is little sign that, at the aggregate level, households are making an active effort to pay down debt more quickly than in the past.”
Saga recently called on the government to make auto-enrolment more flexible so that young savers could use their pension fund to pay off student loans.
Posted by Liam Tomlinson
Figures from Save Our Savers also showed that consumer debt stood at £1,452 billion in November 2011, a slight decline from 2008’s £1,461 billion deficit.
The body issued the findings in response to the Governor of the Bank of England Mervyn King, who yesterday said: “The increase in households’ borrowing came to an abrupt halt in the 2008/9 recession.”
According to Save Our Savers, this was a misleading statement because despite banks writing off £26.7 billion of consumer debt, total consumer debt rose by £18.4 billion.
Secured lending was also shown to have taken a hike as it increase from £1,226 billion to £1,245 billion, before write-offs of £2.3 billion.
The group supported Mr King’s assertion when he said: “There is little sign that, at the aggregate level, households are making an active effort to pay down debt more quickly than in the past.”
Saga recently called on the government to make auto-enrolment more flexible so that young savers could use their pension fund to pay off student loans.
Posted by Liam Tomlinson
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