Consumers paying back debt faster than they take it on

The UK spending public appear to have become more thrifty, continuing to take on debt with loans and credit cards but paying them off just as fast. This is a big jump from the previous situation, which saw Britons taking on more and more debt without enough being paid back.

It’s a sign that, as a nation, we are becoming more financially aware. It means that there is less debt hanging over our heads and we have taken better control of our finances.

However, it’s not just new debt that is being paid down. Households are paying down mortgages and existing loans, meaning that they have more breathing room for any future financial difficulties.

The chief executive of financiers SPF Private Clients, Mark Harris, claims that “lack of consumer confidence, caused by weak economic growth in the UK and the ongoing eurozone crisis, mean most homeowners feel more comfortable paying down their debt than increasing their liabilities.

In an uncertain world, it makes sense to take control where you can, and for many, that is by reducing the levels of debt they are exposed to.”

Of course, settling debt is a good idea at any time, so hopefully this attitude will carry on after the financial crisis had been dealt with. There are plenty of ways to do so, and plenty of companies that will give advice on which is the best for you. Whether you are looking to consolidate your existing debt or take out a new loan to deal with some upfront expenses, there are plenty of options out there for you.

Part of the reason for this may also be the continued bad news that people are being hit with, warned of increasing inflation and cost of living for 2013. If they can get ahead of the curve then they may be able to weather the storm that much better.