A leading independent financial advisor has warned that many Britons are 'managing' rather than tackling their debt.
Association of Independent Financial Advisors deputy director general Fay Goddard said it is difficult to encourage people to save, particularly when credit is so freely available.
Ms Goddard noted that while efforts were now being made to curb spending and to ensure that minimum payments on loans and credit cards were met, there remained a problem with long-term debt.
"You can manage debt but it is still growing," she explained.
"Although I would never want it, recession and high inflation would be the easiest solution."
The IFA expert also said consumers could be in for a shock if the interest rate was to rise and stressed the importance of savings as a means of handling changes in circumstances or adverse economic effects.
The UK recently passed the £1 trillion cumulative debt mark, with concerns aired over the long-term prospects for borrowers.To read more about banking, click here.
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