Those with UK debts are aiming to become debt free, according research released by Equifax. Neil Munroe, external affairs director at the company, believes that more consumers are choosing to spend only what they can afford to, instead of taking on further borrowing.
These are linked with new figures from APACS (the UK payments association) showing that consumers are repaying more than they are borrowing, suggests that more of us wish to be debt free instead of building up unaffordable levels of credit card debt.
The reason for this is believed to be the current economic climate, with increased awareness of the potential future financial pitfalls, such as redundancy, which could limit debt repayments. Monroe comments: “Maybe there is an expectation that their job may not be as secure as it was and therefore people don’t want to be caught out with no job and [high] borrowing still.”