Rather than relying on the government to ensure that they stay debt-free, British consumers should instead take greater responsibility for their personal finances, it has been claimed.
A recent government white paper put forward a range of proposals aimed at making financial products such as loans more transparent for consumers, including the possible introduction of a ‘traffic light’ system similar to that now used in food labelling.
But a spokesperson for Moneysupermarket.com noted that individuals still need to ensure that they adopt a common sense approach to borrowing.
“It is a two-way thing and borrowers have to take responsibility themselves as well to not borrow if they know that something is going to change in their lives,” she said, suggesting that the onus is on the borrower to stop using a card if they lose their job.
According to the latest figures from Credit Action, total UK personal debt stood at £1,459 billion at the end of May 2009.
By David Hewitt