Britons “steering clear” of debt

Britons are “steering clear” of getting into more debt in the wake of the credit crunch, a new poll has suggested.

Figures from Fairinvestment.co.uk have shown that 74 per cent of UK adults have refrained from borrowing any more money since the economic downturn took hold.

The average debt on store finance and credit cards stood at over £2,000 in August of last year, the organisation noted, while outstanding amounts on loans were in excess of £3,800.

In addition, the survey discovered that 26 per cent of those questioned would use any extra money left at the end of the month to make repayments, something that could help them become debt free in the future.

Chartered financial planner at the site Sharon Bratley described the figures as “encouraging”, adding: “Not long ago, people thought nothing of getting another loan or credit card … but as lenders tighten their criteria, it seems people are taking note.”

At the end of February, total UK personal debt stood at £1,458 billion, according to Credit Action.

By Jamie Price