British consumers are being forced to face up to the reality of their own financial circumstances, according to recent research.
A study by the Alliance Trust Research Centre has concluded that more and more families are having to reign in their spending in order to pay off their bills and clear debt.
The research centre has suggested that most people have been happy to take on more
credit card debt to fund their lifestyles in recent years and has cited the impact of the credit crunch as the main reason for the shift in attitudes to spending.
“Over the last two years debt levels have increased as household spending rose, despite a worsening financial reality, however this trend is coming to an end,” said Shona Dobbie, head of the Alliance Trust Research Centre.
David Kuo from Fool.co.uk said earlier this week that people facing debt management difficulties should inform their lenders and not try to hide the problems they are having.