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Homeowners whose income is not protected risk being buried under a mountain
of debt, it has been claimed.
Payment protection Insurance (PPI) provider said that UK consumers have collective
debts of £1.3 trillion and that many households have borrowed up to their limit.
Warning bells are ringing with personal insolvencies reaching 30,000 so far this year,
the firm claimed.
It stated that the UK economy is looking "sickly" as a result of borrowing on credit
cards, mortgages and other loans, while the number of people out of work has risen
by 21,000 to 1.69 million.
"What might seem like a manageable debt when there's a regular monthly salary
coming in can turn into an insupportable burden that cannot be sustained when
unemployment or illness strikes," commented managing director of the firm
Shane Craig.
Mr Craig warned that those who don't bother to protect themselves
could find themselves with money problems if the worst should
happen.
Recent research from Scottish Widows revealed that more than
11 million households in the UK are dependent on more than
one salary in order to pay the bills.
Insurances Limited comments “With interest rates rising and with it
consumer debt then the risk of not being able to meet debt payments is high.
Payment Protection or Mortgage Protection may well be a safe bet.” |
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