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Personal Finance Society: Debt a Ticking Time Bomb in 2018

Personal Finance Society: Debt a Ticking Time Bomb in 2018

Britons are sitting on a “ticking time bomb” of personal debt that could finally explode in 2018 after years of excessive borrowing. Debt has hit a 30-year high and threatens to push millions into the abyss, according to a new report from the Personal Finance Society (PFS).

A “perfect storm” of factors including rising inflation, stagnant wages, climbing credit card rates, pricey car loans and pension pot raiding could tip many over the edge.

Total consumer debt hit £200billion in December according to credit ratings agency Standard & Poor’s.

PFS chief executive Keith Richards said this is becoming unsustainable: “Borrowing levels are at a high not seen since the late 1980s, when consumers became so mired in debt that record numbers of personal bankrupticies and home repossessions took place.”

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