Britain ‘a society grounded on borrowing’

Debt management adviser Credit Action said that the UK society is a culture that loves to borrow, particularly using their credit cards to pile up on debt despite the lingering economic crisis.

Chris Tapp, director at Credit Action said that most consumers need to seek debt management advice to change their mindset on spending, more specifically in using their credit cards. He said debt management advisers must educate the consumers to keep their spending habits in tune with the economic downturn.

Tapp said that despite the ongoing credit crunch, there is not yet any “conclusive evidence” of a major shift in consumer mindset to the use of credit offers.

He said, “We are still an economy that is reliant on credit and we are still a society that loves to use credit.”

In fact, it was estimated that credit card balances may increase in the coming months, “as if the economy” is enjoying a good turn around.

Tapp has advised lenders to be more cautious and selective when issuing credit to customers. At the same time he urged the public to be more watchful in the future about how they borrow.

He expressed hope that the market may become “slightly more moderated” in the near future.

Figures released by the Bank of England showed that the country’s personal debt stood at £1,459 billion as the end of November 2009.

If you are facing debt problems, getting debt advice sooner rather than later will help – left unchecked debt can quickly spiral out of control.