Debt management expert 'concerned' about rising (NI) debt

Monday 20th April 2009

An economist from Northern Ireland (NI) has blamed lifestyles adopted by British consumers in the recent past for throwing thousands across the province into unprecedented levels of debt, it has been reported.

Commenting on recent figures from debt charity Credit Action, Richard Ramsey, an economist from Ulster Bank, is quoted by the Belfast Telegraph as laying the blame squarely on the borrowing culture.

According to the data, credit card debt in the province has now exceeded £1 billion, which the newspaper states is equivalent to £1,600 for every household in Northern Ireland.

These levels of debt are not surprising in light of the current economic situation, observed Mr Ramsey, who said the rise has been down to the rapid economic downturn.

"During the credit boom people were probably overly-optimistic about the future as they had no reason to think the good times would come to an end so soon," he told the news provider.

"Credit cards became a vehicle for financing people's lifestyles and standard of living - and that has come to a premature and abrupt end."

The newspaper also quoted a Money advice specialist from Citizens Advice as saying that the level of debt accrued through credit cards in the province "has always been of great concern" to the organisation.

Meanwhile, fewer people across the UK are now borrowing, according to the data from Credit Action, which shows a 3.4 per cent reduction in total consumer credit lending to individuals over the last 12 months.

At the end of February 2009, consumer credit lending to individuals stood at £231 billion, while the average household debt in the country, without including mortgages, settled at £9,500.

News article brought to you by Debt1 – The debt management company.

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