Credit crunch ‘taught valuable lessons’

The British public appears to have taken a few financial lessons to heart following the recent economic crisis, which has been described as “a huge shock” for the country.

Head of consumer finance at lovemoney.com Ed Bowsher made this observation, saying that people are keen not to make similar errors regarding their money as those seen in the past.

He noted that people are trying not to take out as many loans and instead are attempting to save their cash.

“They are trying to repair their finances and quite rightly,” Mr Bowsher said, adding that this is “absolutely” the correct course of action to take.

He went on to state that “people are still wary” so, in spite of the fact that the recession is officially over, he does not expect to see “any dramatic rises” in borrowing or credit card expenditure.

Mr Bowsher was commenting following the release of the Lending to Individuals report by the Bank of England, in which it revealed that, for December 2009, total net lending climbed by £1.2 billion.

By Sarah Adie