Debt management is now the main reasons why UK consumers borrow money, one expert has suggested.
Robin Amlot, senior editor of the Moneyextra.com website, insists that the so-called credit crunch that occurred earlier this year means that many people are aiming to consolidate rather than add to their debt management burden.
Furthermore, he maintains that lenders are tightening their criteria and are less keen to offer loan deals to consumers who are already struggling to become debt free.
“Recent surveys and anecdotal evidence I have would suggest that debt management and debt consolidation is now the key reason for taking out personal loans,” commented Mr Amlot.
“Although the evidence of a consumer slowdown is mixed at this stage, retailers have already raised concerns that they’ll face a tough Christmas,” he added.
UK consumers typically spend around £384 on gifts for family and friends over the Christmas period and many find themselves with a financial hangover in the new year, a report from Halifax Credit Cards claimed recently.