Britons warned not to become over-confident in their spending

Published: 26 May 2015 09:30

TRUST Deed Scotland is warning Britons not to grow over-confident or complacent with their borrowing or spending despite a new survey suggesting improvements in consumer finances.

The debt advisory specialist has responded to the This Is Money survey, which suggested that the majority who have borrowed to consolidate debt or to buy a vehicle are confident they will be able to repay, by saying that, while this is good news, consumers still need to be wary.

A Trust Deed Scotland spokesperson said: “The survey published on This Is Money implies that confidence in consumer finances is continuing to grow. While this is considered a positive development for many, it is also imperative that consumers do not grow over-confident or complacent with their borrowing and spending. It is all too easy for consumers to develop a false sense of financial security. When interest rates rise, debtors may struggle to keep their debts in check. Confident or not, it is important to regularly review your finances.”

The survey also showed that men feel more confident in being able to repay their debts than women do. The statistics showed that around one in eight people feel assured that they will be able to pay their personal loans, credit cards and overdrafts over the next six months. Around 45 per cent of men stated that they felt very confident about this, in comparison to only 40 per cent of women.

This official data has shown that Britons have taken on more debt in recent months than they have at any other time since 2008. Experts are now warning that these debts may quickly become unmanageable once interest rates start rising. The survey of nearly 4,000 adults in the UK found that the main reason for taking on a loan was to consolidate debt, with around 27 per cent stating that they wanted all of their debts in one place.

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