Debt `could still be our undoing`

16 July 2009

The economy may be returning to growth, but debt - both public and private - could still `be our undoing`, The Telegraph reports.

Surveys show that the services and manufacturing sectors are growing, and banks have begun lending more to households and businesses.

This could, in part, be due to the actions the Bank of England has taken. The pound has been pushed lower and mortgage costs have been reduced.

However, personal and Government debt levels remain extremely high. Over the next year, the base rate is likely to start rising, causing serious problems for households who have been over-reliant on the relative cheapness of credit.

A spokesperson for debt management company Gregory Pennington said: "Although the recession may technically be over already, the rising cost of servicing debt could become a real problem for many people.

"We would advise anyone who finds themselves financially stretched to contact a professional debt adviser and find out if a debt solution, such as a debt consolidation loan or a debt management plan, could help them regain control of their finances."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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