Hey Big Spender! Britain's Love Affair With Borrowing

The UK's love affair with loans, credit cards and mortgages is a common topic in the news these days as Brits fall ever deeper into debt. At the end of April 2007, Tthe total UK personal debt at the end of April 2007 stood at £1325 billion -, an increase of £114 billion from the previous year; a figure that is double and double the debt of our our Western European counterparts.

With bank and credit card companies going out of their way to throw money at us, it seems that almost nothing is out of the average typical person'Joe's grasp. Do you want that brand new stereo, car or luxury holiday but don't have the cash to pay for it? Well, fear not: with a quick visit to the bank or a phone call to a credit card company, you can have it all. But be warned; what we buy today on borrowed money could cost us a lifetime of debt.

So, what is it about the Brits that makesmake us so keen to borrow money with little regard for the long term consequences - and how this couldcould this impair impact on our future lives?

Many consumer groups blame credit card companies and banks who lend money to people who have little financial knowledge and are on low incomes, knowing that they will have trouble repaying the loan, thus locking them into a lifetime of debt. Others claim that the financial institutions aren't to blame, instead pointing the finger at our consumer orientated lifestyle where we're constantly bombarded by adverts for hundreds of items that we don't actually need, and keeping up with the Jones' is the sole aim of the game.

Whilst it's true that our consumer lifestyle creates the desire and the lending companies provide the means which together encourage people to spend more than they earn, it must be pointed out that everyone is accountable for their own actions. After all, nobody is forcing us to buy that new plasma TV, that designer dress or the new car - and if we can't afford it right now, we should save up until we can.

Of course, not all borrowing is irresponsible. If we never borrowed any money for anything, the vast majority of people would never be able to own a property, as there are very few people who have the cash to pay for a home in one go. There are many other situations where borrowing money using personal or secured loans will not lead to financial crippling at a later date. For example a business investment, a car that is necessary if you're going to get to work on time, or perhaps just a holiday of a lifetime for which you have carefully calculated your repayments.

But young Brits must be very careful not to fall into debt traps that are being laid and baited by lenders and consumer product companies. Too many people are sucked into loans and credit by a desire to have something that is out of their budget, yet can seemingly still be obtained by borrowing - without contemplating the long term implications of being in debt.