The era of debt-fuelled consumer spending is over, a financial expert has claimed, pointing out Britain’s consumer debts of nearly £1.5 trillion.
Tim Moss, head of loans at moneysupermarket.com, seemed to be talking himself out of a job by claiming consumers can no longer afford to fund purchases on borrowed money.
Consumers must face up to their financial situation and not “bury their heads in the sand”, Moss said.
“Many people are being pushed to breaking point by the spiraling cost of living and the ongoing effects of the credit crunch but people do need to be aware of their own financial circumstances,” he added.
“The era of debt-financed consumer spending is over, so people will need to take extra time to manage their finances and consider lowering their monthly outgoings.
“Consumers should ask themselves if they really need a new car, the latest Sky package or those new shoes.”
Moss made the comments after research by moneysupermarket.com found three in five consumers wouldn’t worry about their debts even if they lost their jobs.
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