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Consumers 'are too reliant on credit'
Posted by Emily Jones
Consumers in the UK are overly reliant on credit to fund their lifestyles, it has been suggested.
According to Mark Lyonette, chief executive at the Association of British Credit Unions Limited, although such finance may be convenient, it is inadvisable to use it too much.
He said: "For all those good sides of the credit card product, the actual reality is that even today ... you are completely seen as an excellent customer so as long as you are meeting the minimum repayments."
When people are in this situation, they may continue taking out more credit via different cards and eventually reach a point when they are unable to cope with their debts.
Mr Lyonette went on to suggest that individuals should concentrate on savings before they spend money.
His comments were made after Scottish Widows Savings and Investments revealed that 47 per cent of parents with adult children have given or loaned money to their adult children or grandchildren.
05/03/2010 15:54
News category: Consumer