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Consumers fearing debt as prices rise, expert says
29/08/2008 16:57:00
While people do not think the credit crunch bothers them, they fear the debt risk caused by rising prices, an industry expert claims.
Keith Haggart, the director of lifetime mortgages at Prudential, says many people believe the credit crunch has had no affect on them at all.
Despite this, he describes the "vast majority" as worried by how the rise in prices will affect them.
He claims people fear the effects of "rising fuel, petrol and food bills", such as becoming mired in financial problems or becoming unable to pay off their debts.
The results of this month's Nationwide Consumer Confidence Index found 61 per cent of people felt the economic situation was bad, with only 85 per cent believing it was going to get worse.
Mr Haggart says: "They say that it [the credit crunch] doesn't affect them but when you start talking about the prices, they are very worried about it."
According to the Office for National Statistics, the Consumer Price Index stood at 4.4 per cent in July, meaning that prices are expected to increase by this amount over the next twelve months.
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