Tuesday, Jul 28, 2009
The next sub-prime is coming...
Telegraph.co.uk: Credit card crisis to grip Britain, IMF warns
Britain’s credit card debt crisis will get significantly worse in the coming months with a wave of consumer payment defaults, the International Monetary Fund has warned.
The organisation expects £1.5bn of consumer debt across Europe will not be repaid, much of it in Britain which has the highest number of credit card borrowers on the continent.
Analysts say failure to pay credit card bills is likely to increase as unemployment rises and the number of personal insolvencies, which reached 29,774 in the first quarter of the year, continues to rise.
Posted by hotfoot @ 12:50 PM (515 views) Add Comment
4 Comments
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1. refusetobuy said...
The sizes of possible credit card losses are not a large as US Sub-prime losses, but the UK consumer will bear a larger proportion of the pain.
Not sure we've really seen the effects of UK subprime yet. That cloud seems bigger than the credit card one.
2. brickormortis said...
I started banging on about credit card debt to my friends and colleagues asbout 5 years ago and, in particular, their role in helping to fuel the boom (paying for legal fees, furniture, new kitchens, renovations for BTLers etc.) It's easy to pay the bugger off if your house has inreasing equity but when teh tide turns...
3. peeping tom said...
Hey, but we need to spend our way out of recession!
4. enuii said...
Perhaps Britain has the highest number of credit cards in Europe because it is the most depressing and and probably the most expensive place to be depressed in.
If only we had decent summers and a smaller population!