HSBC issues fresh warning on UK consumer debt growth

From the UK on 6 December: HSBC has become the second bank in less than a week to issue a stark warning on the debt crisis affecting British consumers.

The bank said yesterday the rising tide of bankruptcies and individual voluntary arrangements – a less drastic substitute enabling consumers to become debt-free in five years by requiring banks to write off a portion of their loans – “looks unlikely to abate in the medium term”. It warned that this continued to be the “major influence” on the charges banks have to take to cover bad loans. HSBC’s comments follow a similarly bleak statement by Barclays last week.

Advocates at Household – HSBC Watch claim the situation in the United States is even worse. “what goes around comes around” advocates said.