Debt-ridden families a ticking time bomb for EVERYONE in Britain, Bank of England warns
BRITISH families loading up on large levels of debt pose a huge danger to “everyone else” in the economy, the Bank of England has warned.
By LANA CLEMENTS
Express.co.uk
Tue, Jul 25, 2017
Households owing high amounts of credit card and loan debt are a risk to themselves and also the banks that have lent to them, according to the institution’s financial stability chief .
Consumer credit has surged over the past year, with outstanding car loans, credit card balance transfers and personal loans up by a massive 10 per cent, compared to incomes which have risen by only 1.5 per cent, Alex Brazier said in a stark warning.
It comes after monetary policymakers slashed interest rates to just 0.25 per cent last August making borrowing cheaper.
But now it appears the growth in debt has alarmed the the Bank of England’s executive director for Financial Stability.
He told an audience: “Household debt – like most things that are good in moderation – can be dangerous in excess.
“Dangerous to borrowers, lenders and, most importantly from our perspective, everyone else in the economy.”
The Rest…HERE
