In another blow to the economy, it has been revealed that consumer debt defaults across the continent are set to rise. The UK may be singled out as one of the worst offenders when it comes to credit card debt, but the credit card crisis has spread to Europe, according to the Financial Times.
The International Monetary Fund stated that there’s a whopping $2.46 trillion in consumer debt across Europe, and even more worryingly it has estimated that up to 7% of this won’t be repaid.
The recession has been having an impact on the quality of living and employment over the last couple of months, with record levels of unemployment hitting the UK. Due to these factors, consumers are defaulting on regular payments for household bills and credit cards, with America seeing a spike in credit card debt recently.
As the credit crunch takes its toll, it has also been revealed that both The National Debt Line and Citizen’s Advice Bureau have seen a sharp increase in consumers calling for advice.