Debt crisis set to worsen next year, says CSA

Debt crisis set to worsen next year, says CSA

According to the Credit Services Association (CSA), which represents the debt collection industry, the UK debt crisis is set to worsen in 2008, with as much as £24.3 billion worth of debts to be passed on to the debt collection industry. The CSA says that £22.7 billion will be collected in 2007, and next year’s figure could even top the £24.3 billion predicted. “Over-indebtedness will be accelerated by more fixed rate mortgages becoming variable at higher rates, and access to new credit becoming harder,” a CSA spokesperson said. “Consumers are tightening their belts against the background of a credit squeeze. Access to credit is becoming increasingly difficult as lenders tighten their lending scorecards.”