'Shocking things going on' in credit market

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'Shocking things going on' in credit market

Fri 5th Mar 2010

Mark Lyonette, chief executive at the Association of British Credit Unions Limited, announced that there is not enough of a focus on saving before buying and believes a solution should be found to stop this social trend.

Speaking at the Northern Money Conference in Liverpool, he said: "With minimum repayments, you could be on your tenth card and gradually leveraging yourself to the point where you are going to explode."

He added that the dangers within the credit market were more than just high interest rates and warned consumers against the lure of convenience.

The average amount of debt owed by a UK adult was calculated by Credit Action to be £30,306 at the end of January, which is 129 per cent of average yearly income.

Credit Action statistics also showed that a person is declared insolvent or bankrupt every three minutes.

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