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16 November 2006
Personal debt in the UK is now worse than in America, according to a new study by PricewaterhouseCoopers (PwC).
The level of UK debt now amounts to 104 per cent of GDP, compared with 92 per cent on the other side of the Atlantic, while consumer credit amounts to 18 per cent of GDP in the UK, one per cent ahead of the US figure, The Herald reports.
According to the company, the situation has led to a bad debt situation which, alongside new consumer credit laws, has cost card lenders around a billion pounds.
The result, it predicts, is that credit card fees, which fell out of fashion in the 1990's, may have to return, costing the average cold holder £35 each.
Richard Thompson, a partner at PcW, said: "Ultimately the impact of regulation could hasten the return of annual charges as the norm, something the industry has so far managed to do without."
If you have missed any credit card repayments your credit rating may be damaged. Order your credit file now and find out.
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