The UK’s harsh economic climate is forcing thousands of Brits to severely cut back on their personal spending and credit acquisition rate.
A spokesperson for one of the countries largest financial analytics institutions suggested that records highs with regards to the national rate of interest, coupled with comparatively low consumer net earnings, would soon start to show an obvious strain on the pockets of many families.
He further commented that a large proportion of unsecured credit lenders would also start to reduce the availability of their products, with some personal loan and credit card providers already making provisions.
We are in a time of economic uncertainty, for both consumers and credit providers. National growth is slowing at a significant rate, lenders are more reluctant to take risks and consumers are becoming more reluctant to borrow.
One expert suggested that Bank of England is being presented with little other alternative, than to reduce the current rate of inflation before the end of 07, although some analysts predict it may rise further.
