Consumers are reining in their finances, says expert

Consumers are becoming more aware of the need for budgeting as they are able to borrow less, those seeking the best loan interest rates were told.

Justin Modray of candidmoney.com said that the credit explosion prior to the financial crisis left many households overstretched and forced to borrow to fund everyday expenses.

"However, borrowing has slowed recently due to lenders becoming more discerning and consumers tightening their belts in the face of tax rises and spending cuts," he said.

His comments follow research from moneysupermarket.com, which revealed that a quarter of Brits use credit cards to carry their finances to their next payday.

One in ten people admit to using a credit card as a fallback as little as 15 days after being paid, those seeking the best interest loan rates were told.

Mr Modray warned that he believes the buy-now-pay-later culture still persists but "hopefully" to a lesser extent than it did before the recession.

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2011-07-18 13:26:46 © Moneyextra.com