Monday, 27 July 2009

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.

The IMF said the crisis would echo the problems already felt in the United States, where it expects 14 per cent of the country’s £1.16bn credit card debt to go unpaid this year, the Financial Times reported. Read more
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