Wednesday, February 6, 2008

Unwise Lending - 10 million at risk

10m 'may default on debt by end of year'

More than 10 million people may default on repayments for mortgages, credit cards or personal loans by the end of the year.

A forecast from one of Britain's biggest accountancy firms, says that "the merry-go-round of credit is about to stop", as millions of people realise their take-home pay is not enough to service their debts.

Then they shouldn't have lent the money to them in the first place.

According to KPMG, 22 per cent of those adults with debts - equating to 6.6 million - are already finding it difficult to meet their repayments.

However, 35 per cent - or 10.6 million - are worried they will find it even more difficult to pay back their debts in a year.

The figures come from a KPMG survey conducted by YouGov and commissioned by the ITV documentary Repossession, Repossession, Repossession.

It's good news if your a first time buyer or just sold your house, the financial system is as bent as a '2 bob' note.

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