How boys toys are leading Britain into debt
MEN are more likely to get into debt than women according to a new survey into Britain's shopping habits from the Retail Trust.
The surprise findings from the national charity for the retail industry found that 32 per cent of men owed up to 20 per cent of their income.
It has no details as to what exactly men are splashing out on, but the trend underlines that Britons are a nation of shoppers.
The survey also reveals that around a quarter of the nation goes shopping as a way of beating stress.
No wonder levels of consumer debt are soaring and personal bankruptcy rates are at record levels.
A major beneficiary of this state of affairs are debt management companies, which offer consumers in trouble individual voluntary agreements, or IVAs.
The agreements are an alternative to bankruptcy and allow people to pay back their banks and credit card companies. No interest is charged, making it a far more palatable option to bankruptcy.
Less palatable for the banks are the fees charged for arranging the IVAs.
The issue has led to a long-running spat that could finally be resolved this week.
How much simpler things would be if so many people didn't rack up such big debts in the first place.
THE £2billion battle for New Look and the tussle for EMI illustrates the spending power of private equity firms.
So why do they have so much cash when increasing numbers of British consumers are running low on funds? British Retail Consortium director general Kevin Hawkins says one reason is because private equity's investors often hail from booming economies such as the Middle East and China.
And banks are lending record amounts to private equity firms.
The buyout houses are borrowing like crazy because interest rates, which have been rising globally, probably have further to go. They need to get all their deals done before debt gets much more expensive.
If interest rates increase further, private equity will go quiet and UK share prices that have been buoyed up by the recent glut of takeover speculation will fall.
So while the private equity frenzy may seem like a good thing for the UK investor, it may not last.
The hive of activity currently buzzing in the sector may be the beginning of the end.
Source: the express on sunday
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