Consumer credit reaches dangerous level

CONSUMERS continue to go deeper into debt as the latest credit figures reveal that borrowing rose strongly at 16% in the year to the end of May 2003.

Demand for mortgages continued to increase sharply and it sustained the 23.6% growth of previous months, showing consumers remain undeterred by the threat of a house price bubble.

During the month, domestic lending rose €1.3 billion, but that was offset by a decline of roughly €1.3 billion to companies active in the International Financial Services Sector.