This week's personal finance news
News
30/07/2010 11:54:47
Financial planning to suffer as credit card lending grows?
Financial planning could suffer, as recent research shows consumers are more willing to spend money on credit than at any time since the global economic crisis.
Chris Tap, director of Credit Action, says the increase in use of credit cards is "massively worrying", claiming buying items with borrowed money is unsustainable, both personally and for the economy.
A financial adviser may help individuals take control of their ingoings and outgoings, while offering guidance on solutions to liquidity shortages.
The lending expert suggested a slight upswing in consumer confidence may be encouraging shoppers to rely on credit cards "in a way that isn't healthy".
Bank of England figures released yesterday (July 29th) showed borrowing through the medium had grown by £0.1 billion over the last six months.
However, other lending pathways granted fewer loans, falling overall by £0.2 billion.
This could suggest while some confidence is returning to the market, consumers still have not recovered the positive sentiment felt before the recession.
