Credit deals lead to Brits topping debt charts
(08 December 2005)

Brits top the European charts for personal debt – and the devisors of this league table have cited banks and credit card companies as culpable for the tide of credit-related mishap which engulfs swathes of the population.

With the average citizen owing £3,035 - £998 more than the figure for second-placed Germany – Britain holds the highest personal debt in Europe and the no-holds-barred nature of the credit market is seen as a key reason, with consumers often latching onto vigorously-marketed deals which may not in fact be right for them.

Maya Imberg, author of the report by Datamonitor, said: "Attitudes towards borrowing in the UK are very positive and the propensity towards saving is generally quite low. But bank attitudes towards consumer credit have been crucial to the market's development.

"Banks tend to be aggressive in their tactics and offer highly competitive pricing. Moreover, there is a vast range of products available to consumers."

The confusion which ensues can lead to customers being shoe-horned into a long-term credit arrangement which can prove very costly.

The unambiguity of a payday loan presents no such problems. Short term cash of between £80 and £1,000 can either buy you time to find the right credit deal, or erase the need for a longer-term arrangement altogether. With the festive season upon us, it makes sense not to be lured into spending an amount that could take months to repay.

Furthermore, the survey showed that unsecured debt increased by 41 per cent in the UK between 2000 and 2004.



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