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Over the course of the past few years, the UK has generally become a nation with the attitude of “buy now pay later” as more and more individuals have used credit cards and taken out both secured loans and unsecured loans in order to buy the things they want, rather than saving up the money beforehand.

As a result of this spending, the average person in the UK has more personal debt than at any other time and although there have been a number of zero per cent credit cards, interest free credit and cheap loans over recent years, we are paying a record amount in loan interest.

The recent credit crunch and recession seems to have woken a large number of borrowers up to the reality of their situation, as to just how fragile their own personal financial situation is, making them think about how they would manage to maintain all their credit and loan repayments if they should suffer a fall in income for any reason, whether this is due to redundancy or long term illness.

According to new research conducted by moneysupermarket.com, there are now a greater number of people focusing on reducing their credit card and personal loan debt, than there are increasing the amount they borrow.

We reported earlier this week that although somewhere in the region of half of over 50’s have personal loan and credit card debt, around half of these individuals are actively reducing the amount they owe and this seems to be the current trend across all age groups, as many people are showing a reluctance to apply for any new personal loans for purchases, albeit possibly in the belief that they will not be accepted for a personal loan by their bank or other loan company.

Whatever the reason, the fact remains that the average level of personal debt in the UK is slowly reducing.