Recent figures around the UK’s credit and debit card debt are startling indeed, with the number of transactions rising to its highest annual rate since 2008. This, paired with the fact that household income has barely changed over the last decade, has left financiers scared that the UK is on the verge of another recession.
Some politicians will blame the government for the current situation. They will say that years of ‘austerity’ forced the British public to buy things with money they didn’t have. Though it is true to an extent that cuts have pushed many towards credit, it is not the whole picture. Relaxed attitudes towards lending have to be blamed, too, particularly among the young.
The fact is that much of my generation sees loans, cards and overdrafts as an extension of income, rather than a last resort; a mindset that was mostly born at universities, and has vastly contributed to the nationwide trend.
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