UK is facing debt problems at a large these days. Day by day, we are getting familiar with the terms like, debt management plans, debt consolidation loans, IVAs and bankruptcy. But, the question arises that how much our consumer society is responsible for the increase in these debt problems.

Credit cards, bank loans, overdrafts, store cards – until the recent recession they were available all too easily to all too many people. Lending institutions were fiercely criticised for the ease with which they allocated credit to people who may not even be able to afford to pay it back. Even students were able to access overdrafts of 1000 or more. These are people who do not have an income! While lending did slow down during the 18 month recession, it certainly looks as though it will creep back up again in the near future. But will it return to the levels that led to so many spending so indulgently?

That is not it. Students used to have access overdrafts of 1000 or more. Not all the people who took loans had a source of income. It seems like lending will come back again in the near future as it slowed down during the last 18 months due to the recession. Now, the question is that will its return indulge people in freely spending again?

If we analyse the worth of plastic money, we shall find that it does not carry much value. Yet, for the present generation, using plastic money for expenditures is very common. We tend to agree to all the assigned charges, profits and inflated costs of credit without any resistance. Making purchases through plastic money is not a worth consideration. When you have pay back, it costs you a lot more than you owe.

Comparatively, the term \”hire purchase\” is new for people, and they are not properly aware of it. The previous generations, when they were at low credits, used to struggle and get the desired things after a long wait and time and they were did not have to take loans or debts in most cases. Credit cards have generated unsecured debts, and there are a record number of personal debts at the present. Consumer driven society is affecting the debt problem very severely, and there is a huge need of lowering our expenditures to stop this debt problem for the present and future both.

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