Consumer borrowing sparks bankruptcy fears
Undaunted by warnings, consumers have continued borrowing and spending, prompting a new surge in household borrowing and renewing fears of bankruptcy amongst economists and politicians.
Speaking following the publication of new borrowing figures put out by the Bank of England yesterday, Liberal Democrat trade spokesman Vincent Cable warned that the increased borrowing could lead to ‘negative equity repossessions and record levels of bankruptcy.’
He added that householders should prepare for ‘an almighty crash’.
Figures published by the Bank of England yesterday found personal debt had soared to a record £10bn in June, increasing 13% on last year, at the fastest pace since 1990.