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Risk from credit crisis is still high

Anyone falling outside defined “thresholds” could be at risk from the credit crisis.

Despite signs of gradual recovery in the mortgage markets, tighter credit conditions may re-emerge in the aftershock of the recent financial turmoil.

But people with debt repayments of more than 55 per cent of their household income or net worth less than 33 per cent of their income could be in jeopardy.

The two thresholds provide a handy guide for consumers to see if they are potentially sitting ducks. By ensuring that people stay comfortably within them they should be better placed to face any unexpected shocks in the future.

Consumers should draw up a statement of affairs or an income and expenditure to get an accurate view of their financial situation and to see if they are at risk.

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