Banks still struggling with bad debt
TDX Group, the UK’s leading debt management solution provider has released the TDX Debt Index for the first quarter of 2007.
The index shows a 4.7% increase, indicating deterioration in macroeconomic conditions and making it more difficult for creditors to collect their outstanding debt.
“The impact of recent interest rate rises on disposable income is likely to have been a key driver of the Index’s continued increase with consumers preferring to reduce saving rather than spending and we expect conditions for creditors to continue to worsen,” said Mark Onyett, CEO at TDX Group.
“Many consumers are not aware of the impact an interest rate increase can have on their finances until it is too late.
"Therefore, education on financial management should be placed higher on the agenda from an early age.”
Based on a number of macroeconomic and industry performance factors, the TDX Debt Index maintains the trend seen last quarter by continuing to increase.
This is driven by Delinquency and Wealth Indicators while the Debt Burden component remains broadly neutral.
A sharp fall in the Household Savings Ratio in the last quarter is the largest contributor to the negative movement in Wealth Indicators.
Deterioration in Delinquency Indicators has continued, with the slow growing of individual insolvencies offset against a prolonged period of high write-off rates."
Source: creditcontrol.co.uk
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