Cheap credit days `are over`

British consumers struggling with debt will not be able to obtain cheap credit for many years as a result of recent global events, an industry expert has claimed.

In response to changes announced earlier this week by the British Bankers` Association (BBA) to the Libor rate, Moneyfacts stated that lenders are having to be more prudent with who they give money to due to the credit crunch.

As a result, those consumers relying on loans or credit cards to pay off their debts may have to find alternsative ways of servicing debts, the organisation`s spokesman Darren Cook said.

He added: "I am sorry to say that we are nowhere near to heading back to the days of cheap credit and I don`t see us there for a number of years to come."

Tighter scrutiny of the rates contributed by banks will come into force by the BBA, so that any discrepancies are noticed quicker, helping those who have mortgage products.

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