Money Debt and Credit

Money Debt and Credit

August 01, 2011 03:00 ET

Don't Bury Your Head in the Sand: Seek Debt Advice

WATFORD, UNITED KINGDOM--(Marketwire - Aug. 1, 2011) - A report published by the British Bankers Association (BBA) released this week (July 25th) reveals that the level of unsecured credit in the UK has fallen over the past year, signifying that the public are still exerting caution over borrowing. The figures suggest that Brits are trying to reduce their debt burden. However, not all individuals are aware of how to do so.

In light of this new data, UK debt solutions company Money Debt & Credit is urging individuals who are experiencing money problems to take action in order to improve their financial situation.

According to the BBA figures, demand for unsecured borrowing remains weak with credit repayments continuing to outweigh new lending. Unsecured credit dropped by 1.2 per cent over the past year, while personal deposits rose by 3.5 per cent. This suggests the average consumer in the UK is avoiding credit to meet the cost of living and turning to their personal savings to cover these expenses instead.

In addition, borrowing on cards has expanded only gradually over the past two years; this can be attributed to the interest added to accounts rather than an increase in spending – indicating that consumers are continuing to attempt to reduce their credit card debt.

Denise Moran, CEO for Money Debt and Credit, commented: "It seems that people are becoming more careful about the type of credit they take on. Those who are in financial difficulty and finding it challenging to meet debt repayments should make sure they don't bury their head in the sand in the hope that the problem will resolve itself. There are a range of options available to people in this position that have the potential to help before it is too late; we advise anyone struggling with their finances to seek debt advice as early as possible and explore the possible resolutions open to them."

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