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News: Britain 'will be a divided nation in the future' News: Britain 'will be a divided nation in the future'

Britain 'will be a divided nation in the future'

Wed 1 Jul 2009 - Published in Loans

Britain 'will be a divided nation in the future'

Britain will be split in the future, into people who are able to save money and those who are in debt, one expert stated.

David Kuo, director at the Motley Fool, said a divide will occur following the economical downturn and recent job losses, saying people who have access to credit will likely have to rely on it.

However, he said some people will not be entitled to any, in the form of credit cards, mortgages or loans, as banks tighten their lending criteria.

"What we are seeing at the moment is banks are reluctant to lend money to people. I think the reason for that is, the banks are fearful about lending money and then not seeing the money come back," he added.

His comments follow figures from Credit Action which said the increase in personal debt has slowed, rising by £22.4 billion, compared to an increase of £166 billion last year.