RTTNews - Consumer debt defaults in Europe is likely to rise as the credit card crisis in the U.S. spreads to the continent, the Financial Times reported Sunday, citing the International Monetary Fund.
According to the estimates of the IMF, 7% of the $2.46 trillion of consumer debt in Europe will not be repaid. The organization noted that U.K., known for its biggest number of credit card borrowers, would be the most hit.
In the U.S., the IMF estimates $1.91 trillion of consumer debt and about 14% of this amount will be lost. Credit card defaults in the U.S. have been rising for months due to rising number of unemployed and the recession took its toll on consumers.
The newspaper said the National Debtline had received 41,000 calls from consumers worried about loan, credit cards and mortgage arrears in May, more than double the 20,000 calls it had got in the previous year.
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