Higher living costs mean 'bleak times ahead' for debt-hit Britons
Higher living costs mean 'bleak times ahead' for debt-hit Britons
Monday 7th July 2008
Jason Gordon, retail director of Ernst & Young, issued the warning in the wake of a study showing how the hikes to mortgage repayments as well as higher gas, electricity and food bills had impacted on finances.
The accountancy firm found that the increases mean that the average household is 15 per cent worse off than it was in 2003.
Mr Gordon said: "Many UK consumer segments are clearly feeling the pinch as big rises in household costs are far outstripping relatively modest wage inflation.
"If, as predicted, interest rates are increased to control rising inflation consumers will face even bleaker times."
News of the company's findings comes after KPMG predicted that there would be 130,000 personal insolvencies in the UK by the end of this year.
This equates to one person becoming bankrupt or entering into an Individual Voluntary Arrangement (IVA) every four minutes.
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