Britain facing FINANCIAL CRISIS? Major warning as families take on £200BILLON of debt

credit debt crash


Families face increased difficulties in paying back money owed, which has prompted the agency to downgrade two of the country’s finance sectors.

Moody’s has given two structured finance areas a negative outlook, because the products are in effect loans bundled together, so prices could take a hit if borrowers start to default.

Greg Davies, a research analyst at Moody’s, said: “Household debt is high and still growing, leaving consumers vulnerable to an economic downturn, while higher inflation, weaker wage growth and levels of indebtedness leave those in lower-income brackets the most exposed.