According to the survey by the Confederation of British Industry and quoted by This is Money, over 60% of 57 participating banks and building societies reported rising levels of bad debt. This is significantly up from 47% in the previous three-month period.
The report by This is Money claims that debt that borrowers cannot pay back is at its highest level since the recession in the early 1990s.
Borrowing in the UK has increased in recent years due to a conducive environment of low interest rates, low unemployment and growing acceptance of personal debt. It is against this backdrop that UK citizens have accrued the highest level of personal debt in Europe. However, surveys such as this one suggest that borrowing may be getting out of hand with indebtedness increasingly turning to ‘overindebtedness.’
