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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`

UK `must reduce consumer debt`

24/06/2009

People are being more sensible with their money and are reducing their levels of personal debt, which is good for the UK, it has been claimed.

According to David Kuo, director of Fool.co.uk, people are concentrating on paying off their debts during the recession.

He said: "[Consumers] are making use of the lower interest rates to repay debt and that can be no bad thing for the UK because the only way [the country] can dig itself outside of this hole is to get consumer debt down to a more sensible level."

Mr Kuo also predicted that people will not start spending money as freely as they did prior to the recession until they witness a stabilisation in the employment market.

The expert suggested that consumers should have between six and nine months` of expenses saved up in case of an emergency as this could help them avoid falling into debt problems.

His comments came in the wake of figures produced by Ernst & Young, which suggested that the typical household disposable income for the average UK family has risen by over £200 compared with 2008.

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