UK Consumers Get More into Debt – Markit

A research carried out by the Markit company revealed that Brits get more and more into debt as they have to borrow just to finance their daily expenses. Since the cost of living in Great Britain is increasing constantly and the salaries stay at the same level, Brits turn to loans to pay their bills.

The Markit research showed that 6 times more people (36% of the respondents) confirmed their financial standing worsened last month, as opposed to 6% of people who said they became better off in May. What is even worse, 90% of those questioned said they expect their living costs to further increase in 2012; only 1% of respondents expects the prices and inflation to ease.

Talking of inflation, it should be said that its level increases, unlike the level of salaries meaning that "price increases are outpacing the increase in household income."

The Office for Budgetary Responsibility (OBR) expects UK consumers to borrow up to £500 billion in 2012-2015 to keep up with their current standards of living.