23rd June '08 - Bankruptcy & Debt 'Ticking Timebomb'
One of the UK’s leading accountants has warned that many UK consumers are facing a “ticking timebomb” of debt and potential bankruptcy.
Andeep Mangal, recently appointed as President of the Birmingham and West Midlands Society of Chartered Accountants, marked his election by warning that rocky economic times lie ahead, with job losses, bankruptcy and the cost of loan repayments strong concerns.
He commented, “The credit crunch and rising cost of fuel prices mean there are tough times ahead for the clients we advise.
“There is also a ticking timebomb with the explosion of credit card debt as more people use them to finance other expenditure.
“This is a serious problem and is one I don’t think has been widely reported. Rather can cut back on spending they are trying to finance things on credit and a number of households are finding themselves unstuck.
“Everyone is feeling the pinch, not just in rising prices but in the economic downturn as well. Confidence is very low and there is a lot of bad news about at the moment.”
Bankruptcy and debt management are two very real concerns for both businesses and consumers in the West Midlands region at the moment, with around 500 jobs reportedly under threat at the Birmingham office of Serco, and 300 employees said to be facing unemployment at the Birmingham offices of Norwich Union.
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