28 April 2008
UK consumers have been warned about the present debt levels the country faces by the Archbishop of Canterbury, Rowan Williams.
He claimed that poorer people find it difficult to undo their debt situation and get trapped in a spiral of unsecured credit, reports Reuters.
And the credit crunch is hitting hardest those who are not vastly wealthy anyway, Williams noted, such as younger customers, who may be forced to take out personal loans.
"We need to look at what it means for a whole economy to be built up on spiralling, more or less uncontrolled credit," he told the BBC.
In addition, he called on doorstep lenders to lower the interest rates that they offer to consumers in an effort to ease the debt burden.
Some consumers, he suggested, do not fully understand the interest rates that they will have to pay back on credit they obtain.
The National Union of Students stated last week that some financial options for those at university have been ostracised in the wake of the credit crunch.
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