Wednesday 20th of May 2009
Lower mortgage rates mean many consumers have more money available to pay off debt, but a reluctance to borrow is still emerging, according to an expert.
Sandra Quinn, director of communications at Apacs, explained that the recession is forcing people to place a greater emphasis on the need to avoid debt worries.
She noted that the payments association’s figures have identified a trend that sees Britons attempt to avoid getting further into debt.
"People seem to be … moving to debit card rather than credit card, because they are spending what they have rather than what they can borrow," Ms Quinn remarked.
However, many consumers could find that they continue to face problems in repaying what they owe and these people may wish to seek IVA advice online to establish the best course of action to reduce their debt.
Apacs figures indicated that the total value of credit card purchases was £126.3 billion in 2008, just over half the amount the spent on debit cards.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Consolidating debt 'proving difficult'
