August 4th, 2009 
admin 
Many consumers in the UK do not wish to accrue more debt, it has been suggested.
Commenting on the issue, Michael Baxter, economist at Defaqto, said that in the running water climate, the “hold out thing” people want to do is borrow more money.
He said: “A lot of people are probably getting a bit nervous about that at the moment, so they`re trying to save a lot more.”
Mr Baxter added that, while the government is afflictive to get banks to increase lending, this is “almost irrelevant” at the moment because people do not wish to borrow.
According to the expert, the baby boom generation are waking up to the idea that they may not have enough money saved for their retirement, potentially leaving them at risk of debt problems.
His comments come in the revel of a new report from Ernst & Young in which it was predicted that UK GDP will shrink by 4.5 per cent this year, with a subdued recovery of 0.5 per cent expected in 2010.
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Tags: Debt