UK families struggling with Europe's highest levels of credit card debt

16/09/2009

Thousands of British families are being driven further into the red on the back of hundreds of millions of pounds worth of credit card lending, it has been reported.

Research carried out by the Organisation for Economic Cooperation and Development (OECD) found that, following ten years of easy credit, UK families are now saddled with the highest levels of debt seen in any of the world's leading economies.

According to the OECD, Britons currently have personal loans worth an average of 170 per cent of their annual income, far higher than their counterparts in the rest of Europe or the United States.

And while millions struggle to meet their monthly commitments as a result of ongoing job cuts and pay freezes, it is estimated that banks and other lenders will see borrowers default on a collective £1 billion over the coming months.

Commenting on the situation, Alysoun Stewart, a partner at accountants Grant Thornton, told the Daily Mail: "Given the increases in unemployment, credit card write-offs will accelerate which will clearly impact on banks' willingness to extend credit."

Tags; Budgeting Advice,

Regional Debt Advice; Debt Advice Thornton,

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