Many Still In The Red As The Green Shoots Of Economic Recovery Start To Show

According to research carried out by the British Banker’s Association, £1.3bn in consumer loans was issued in February 2010, which is an increase of £100m on the previous month and the highest on record since September 2009.

The Bank of England’s figures also showed an increase in the amount of unsecured debt taken on by consumers during February, which rose by £528m. Within this total, credit card debt rose by £374m, a level not seen since November 2008, while borrowing through loans and overdrafts also reached a 15-month high of £154m.

David Rodger, Managing Director of Debt Advice Foundation comments: “The easing of the purse strings by UK banks is good news for the economy but we must make sure that we’ve learnt our lessons and that we don’t return to the bad old days of papering over the cracks by borrowing against the value of our homes and living beyond our means.”

“Let’s not forget that the desperate need for impartial debt advice hasn’t gone away, with much of the third sector turning people away after being unable to cope with a 28 percent jump in demand. As a charity, we offer a free, confidential debt helpline to anyone worried about debt; importantly, we also aim to prevent future debt problems through our research and financial education initiatives in UK school.”