Attitudes to debt have changed, says Money Advice Trust

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Attitudes to debt have changed, says Money Advice Trust

Mon 10th May 2010

People are more cautious about borrowing cash, according to the Money Advice Trust, but this does not stop unpredictable events causing problems.

Chief executive of the financial charity Joanna Elson highlighted how individuals can sometimes take on debts that they are able to afford, but then something unexpected happens, such as a death or divorce, which causes them to struggle financially.

But she stressed: "We think the general attitude to debt has changed. People are now more cautious about borrowing and spending and think through the consequences of getting themselves in debt."

Her comments were made following research by Credit Action, which showed that the total personal debt in the UK reached £1,460 billion in March, up 0.9 per cent compared to the same period last year.

Ms Elson pointed out that there has been a "sharp rise" in the number of individuals calling the Money Advice Trust's debt helpline and described the effect of the credit crunch as devastating.

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