Rising household debt, combined with stagnant wages, poses a major threat to the UK economy, according to the Organisation for Economic Co-operation and Development (OECD).
The OECD warned that personal loans such as credit cards presented a much greater risk of default compared to mortgages and said that worsening economic conditions could make repayments unaffordable for many borrowers.
The Paris based think tank said it expected UK growth to be the lowest of the G7 economies and that this will constrain wage growth, putting more pressure on already strained household finances.
It called for tougher affordability checks to be introduced to stop banks from lending to customers who might struggle with repayments, to prevent the banks from running into trouble should they be faced with a higher default rate.
The UK’s unsecured debt on credit cards, store cards, personal loans and car finance deals reached £200 billion this year, the same level it was at just before the 2008 financial crisis.
We can help.
If you’re one of those people struggling with unmanageable store card debt, there are options, however.At Get Help With Debt, we can write off thousands of pounds in debt and help you to manage the remainder, so it’s affordable for you.
Go online to our website and take our free online assessment, then book your free, no obligation consultation with one of our debt advisors to find out how we can help you.
Once you’ve met with your advisor we can present you with a range of bespoke solutions and you can make an informed decision about what approach is best for you. After that we do all the hard work, handling all third party communications for you, so you don’t have to deal with your lender anymore.So, go to www.gethelpwithdebt.co.uk and start the process of becoming debt free.