Borrowers 'turning to higher-cost credit'

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Borrowers 'turning to higher-cost credit'

Fri 29th Feb 2008

As the effects of the credit crunch continue to affect financial institutions throughout the UK, more borrowers are finding they most look at higher-cost credit alternatives, it has been suggested.

Chris Tapp, director of Credit Action, said that those who in the past may have sought credit from high street lenders, now may find they are less able to obtain credit in the present financial climate.

"It's likely to be a year in which, as the economy more generally slows down, the rate of borrowing will - to an extent - slow down with it," he added.

Mr Tapp remarked that consumers are "likely" to reign in their spending during 2008 and try to save money rather than spend it.

Debt Help UK statistics reveal that 74 million credit cards have been issued in Britain and residents of the UK have five times more cards than the European average.

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