Attitudes to debt 'have changed'

Wednesday, March 31st 2010

People now prefer to pay outstanding debts rather than letting them build up, according to an expert.

"Consumer attitudes to debt have changed," said a spokesperson for the Consumer Credit Counselling Service (CCCS).

He added that people now owe less than they used to, but there has been a growth in consumer credit because criteria on lending has been relaxed.

The comments follow statistics from the Bank of England, which found a £2.1 billion rise in total net lending to individuals last month.

Despite these findings, the spokesperson stated it does not mean borrowing will return to the way it was before the recession.

But there are still many people who are struggling with debt. "Increasing numbers of people coming to CCCS lack the means to cover basic living costs," the spokesperson explained.

And many Britons can expect to see interest rate rises combined with public spending cuts next year, he continued.