Sub-prime consumer lender Cattles said arrears had increased in the first half of this year as pressure mounts on household budgets.
The specialist lender said its share of customer balances with some proportion of arrears had risen from 29.2 per cent to 31.4 per cent in the first six months of 2008.
West Yorkshire based Cattles has tightened its lending criteria in response to the more difficult climate, leading to lower acceptance rates, but has seen demand for its loans grow as more customers are turned away by mainstream banks.
A spokesperson Cattles said: “The squeeze on consumers’ disposable incomes has had an impact on arrears.”
Chiltern’s Nathan Gladwell says: “The increased number of accounts falling into arrears is further evidence that sub-prime borrowers are facing tough times.
“Quite often, people do not truly know how to budget correctly and prioritise their debts, so will eventually fall behind with payments.
“Informal debt management takes this pressure away, as debts are put in order and budgeted for accordingly., which is why customers should seek impartial guidance from a professional debt company, like Chiltern.”
