Britons 'borrowing less as financial understanding grows'

People are borrowing less frequently as they know more about money, it has been said.

Britons are beginning to use finance options like credit cards and personal loans less frequently as they become more aware of their monetary situation.

That is according to Justin Modray of online resource Candid Money, who has noted that banks and building societies have decreased the fluidity of their lending following the global economic downturn, as this event has made them "more discerning".

Mr Modray explained that consumers have also "tightened their belts in the face of tax rises and spending cuts", meaning the issue of "overstretching their borrowing" to fund essential purchases is now less pertinent.

The expert went on to say that while the buy-now-pay-later culture does still exist to a degree in the UK, this is now seemingly to a "lesser extent than before".

Recently, Robin Ellison, partner at Pinsent Masons, stated that younger people are not yet in a position to use savings accounts to plan for their retirement.

By Joe Letts