Friday 20th July 2007
Mortgages and council tax are causing debt problems, but the reality "is not hitting home", according to an expert.
Shona Dobbie of Alliance Trust Research Centre claims that Britons are continuing to spend at unsustainable levels.
In light of five interest rate rises in the past year, she warns that many consumers are adding to their personal debt.
"British families continue to borrow big and spend bigger which confirms this reality just isnt hitting home," she states.
"Its only really thanks to recent economic growth and lower utility prices that weve seen even a mild improvement in the predicament."
But she predicts that spending could ease in the coming year as more consumers look to tackle their personal finance situation more directly.
Alliance Trust adds that "rising debt and falling real income" combine to present "cause for concern" among consumers.
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