Liberal Democrats in Business

News and views from the Lib Dem Trade and Industry Team, Vince Cable and Brian Cotter

Banks Must Stop Fuelling The Borrowing Boom - Cable

6.07.00pm GMT Tue 2nd Nov 2004

Commenting on figures released today by Datamonitor, that show that the UK holds half of all Europe's credit cards, Liberal Democrat Shadow Chancellor, Dr Vince Cable MP, said: "We are now over £1 trillion pounds in debt and we have one of highest levels of unsecured debt in Europe.

"Today's figures are particularly worrying as there is much evidence to suggest that rather than the audience widening we are seeing certain individuals taking on more and more credit cards. There is also increasing evidence that many are unable to pay their bills in full.

"The survey clearly shows that UK banks have been recklessly fuelling the borrowing boom that has led to a growth in our 'pay later' culture.

"Rising interest rates, falling house prices, and mounting personal debt are all danger signs for the British economy. A downturn could lead to many falling into financial difficulty."

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