17 June 2008
It is only a matter of time before the debt owed by people in the Midlands catches up with people, one expert has suggested.
President of the Birmingham and West Midlands Society of Chartered Accountants Andeep Mangal suggested that the credit crunch will come home to haunt consumers.
He noted that people continue to spend on credit cards but rising living costs are becoming a threat all of the time.
"This is a serious problem and is one I don’t think has been widely reported. Rather can cut back on spending they are trying to finance things on credit and a number of households are finding themselves unstuck," he told the Birmingham Post.
Mr Mangal added that there is "a lot of bad news around at the moment" and that everybody is beginning to see the problems that have arisen from a slowing economy.
This week, Norfolk Debtline said that the collective debt reported to it stands at around £16 million.