Abacus Daily Debt News

Debt management ‘would assist economic recovery’

The economic recovery would benefit from people following good debt management practices, it has been suggested.

Economist Melissa Kidd of macroeconomic analyst Lombard Street Research stated that it would be "undesirable" for the UK to move away from the recession on the back of high lending levels as the country could end up in a situation similar to the one which led to the credit crunch.

"It would be preferable to have a slower burning recovery based on paying down of debt and solidly built on demand that it is not fuelled by credit," she remarked.

Ms Kidd added that she hoped the economy will become less reliant on debt as a whole and indicated that Germany’s strong focus on savings might be a good example to follow.

Her comments were made as the CBI revealed businesses are finding it easier to obtain credit for the first time since 2009 began.

By Chris Trimble