UK debt is 'ball and chain around our ankles'

www.moneynews.co.uk > Debt > UK debt is 'ball and chain around our ankles'

UK debt is 'ball and chain around our ankles'

Mon 7th Sep 2009

The level of debt that people are dealing with in the UK could stop it from coming out of the recession as quickly as other countries, noted an industry commentator.

Peter Sargent, president of R3, noted that the UK could be left behind when other European countries emerge from the recession, because the level of debt that exists is like a ball and chain that hinders the nation's progress.

He recommended that people pay off their existing debts starting with the most expensive one, but most importantly he felt that people need to stop borrowing money at high interest rates, such as using credit cards.

"People are borrowing on their credit cards and paying off mortgages, which is wrong because credit card debt costs more to service," he said.

Mr Sargent pointed out that everyone should be aware that the most expensive debt will be the one with the highest interest rate.

Last week, the Bank of England announced that there had been a drop in the total net lending in July to £0.6 billion.

Click here for more debt news

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'