Thursday 27th March 2008
Many consumers could be in debt as it has become part of their lifestyle, it has been claimed.
Anna Sofat, director of money management service Addidi Wealth, explains that debt has been used by some people on a daily basis in recent years.
Such individuals may have been relying on the relatively low interest rates on credit products to assist them in eventually repaying the lending, she contends.
However, with credit conditions tightening, Ms Sofat warns that consumers cannot outrun their commitments "forever and a day".
"What we pay in utilities is quite horrifying compared to a few years ago, so thats a pinch," she adds.
"And I think were all feeling a little bit more pessimistic because of the credit crunch."
She concludes that the credit crunch is manifesting itself not in terms of interest rates themselves, but in the availability of lending.
As a result, the days of personal loans at rates similar to those applied to mortgages "are going".
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