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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

Govt `must step in to stop debt addiction`

04/02/2009

UK consumers are addicted to debt and the government must step in and take action.

This is according to David Kuo, head of personal finance at Fool.co.uk, who said that the current economic crisis is a result of 14 years of "binge borrowing".

He said: "We`ve become addicted to debt at the moment. It is right for the government to step in and do something."

Mr Kuo added: "I would like to see consumer debt start to come down to a more respectable level and from there we can start moving forward."

The expert suggested that it is the responsibility of everyone with a mortgage, loan, credit card debt and bank overdraft to begin to slowly pay back what they owe.

There is some evidence that consumers are using the current economic conditions to begin paying off their debts.

Figures produced by Lloyds TSB, for example, reveal that since the base rate of interest fell by 1.5 per cent in November, 27,000 of its mortgage customers have asked to set up an overpayment.

Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according Rising household costs could pressure people in debt 10/08/2010 - The UK may be about to see a rise in