wise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to spDebt is an issue that affects nearly all of us. Whether it's paying the mortgage or rent, a periodic utility or council tax bill, credit card spending, a student loan, or a personal loan or overdraft, we all have financial commitments to meet that involve some element of debt.

Over the past 20 years, the amount of outstanding debt has risen dramatically through the growth in consumer credit. An ever increasing range of credit cards, bank accounts with overdraft facilities, flexible mortgages, personal loans and so on means a vastly increased choice in how to borrow money. More recently, the introduction of so called 'impaired credit' products offers a borrowing opportunity to those who would previously have been refused credit by the high street banks. And to persuade us just how lucky we are to have this new opportunity, the marketing of credit is now impossible to avoid, whether by newspapers, television, telephone cold calling, email, or post.

In many ways we can benefit from these developments. Borrowing more can be a perfectly sensible choice for fully informed consumers who make optimal choices in their use of credit. Taking on additional debt can even out fluctuations in income and spending and allow us to buy today what we otherwise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to spe

t of outstanding debt has risen dramatically through the growth in consumer credit. An ever increasing range of credit cards, bank accounts with overdraft facilities, flexible mortgages, personal loans and so on means a vastly increased choice in how to borrow money. More recently, the introduction of so called 'impaired credit' products offers a borrowing opportunity to those who would previously have been refused credit by the high street banks. And to persuade us just how lucky we are to have this new opportunity, the marketing of credit is now impossible to avoid, whether by newspapers, television, telephone cold calling, email, or post.

In many ways we can benefit from these developments. Borrowing more can be a perfectly sensible choice for fully informed consumers who make optimal choices in their use of credit. Taking on additional debt can even out fluctuations in income and spending and allow us to buy today what we otherwise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to sp

aired credit' products offers a borrowing opportunity to those who would previously have been refused credit by the high street banks. And to persuade us just how lucky we are to have this new opportunity, the marketing of credit is now impossible to avoid, whether by newspapers, television, telephone cold calling, email, or post.

In many ways we can benefit from these developments. Borrowing more can be a perfectly sensible choice for fully informed consumers who make optimal choices in their use of credit. Taking on additional debt can even out fluctuations in income and spending and allow us to buy today what we otherwise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to sp

email, or post.

In many ways we can benefit from these developments. Borrowing more can be a perfectly sensible choice for fully informed consumers who make optimal choices in their use of credit. Taking on additional debt can even out fluctuations in income and spending and allow us to buy today what we otherwise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to sp

wise would have to put off until tomorrow. While our grandparents' generation would be appalled at this concept, it is now a firmly established feature of our society on the wider scale, economists generally agree that a major recent factor in avoiding a damaging recession has been the willingness of consumers to spend money that they don't actually have.

But there is a significant downside. The growth of credit also means an increase in the number of borrowers experiencing financial difficulty Whether it is through sickness, unemployment, the birth of a new child, over commitment or other factors, the number of people seeking help on debt issues has risen steadily. In 2001 02, Citizens Advice Bureaux (CABs) dealt with over one million new debt cases, and there has been a 47 per cent increase in consumer credit debt problems brought to bureaux over the last five years. The growth in debt advice enquiries is such that CABs have not been able to meet the demand. One consequence of this has been the growth of commercial companies looking to make a profit from helping with debt problems, whether through offers of further loans or management of existing debt.

CABs are at the sharp end of the demand for debt advice, and advisers regularly see the misery that debt problems can bring. They also know how easy it is for someone in a viable financial situation to suddenly develop a major debt problem irrespective of age, income or social background. A survey of CAB debt clients in 2002 showed that it took only a 10 per cent drop in income to change manageable