People are becoming 'cavalier' about debt

Under 50s have undergone a shift in their attitude to money and may now be building up debts through payday loans and credit cards instead of saving.

The second "Big Money Index" from AXA said that people have become more cavalier in their attitude towards money compared to the second quarter.

One in ten have borrowed more on an overdraft and nine per cent borrowed more on credit cards or loans then they have previously, with the increased borrowing seen to be higher among those finding it difficult to make ends meet.

However, in spite of the increase in borrowing, debt repayments and savings have fallen, the study revealed.

"Caution must be urged against borrowing to make life more comfortable ... savings are being depleted or ignored, debts are mounting, and risks are being taken with assets as financial products are being scrimped on," said AXA UK's director of customer partnerships, Nick Turner.

Aviva also recently revealed that many parents are being forced to give up work in the face of increasing childcare costs.

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2011-09-02 15:52:44 © Moneyextra.com