Credit Indebtedness and the UK Retail Trade

Abstract

Prior to the end of 1989, most sectors of the UK retail trade had for some time been benefiting from a boom in sales. Many reasons may be forwarded to explain the high level of sales that had devéloped. This paper focuses attention on the greatly increased levels of consumer credit indebtedness associated with high retail sales. Examination is made of the possibility that a fundamental change in UK patterns of saving and spending has taken place. It is suggested that the retail trade must pay attention to the implications of rising credit and of any restrictions on consumer credit that may be introduced at some future date.