Recession 'may lead to greater money management'

The recession may encourage people to improve their money management skills, according to one expert.

Credit Action's director Chris Tapp suggests that consumers might have learnt a lesson after taking on large amounts of credit card debt in the past.

He commented: "We have seen a catastrophic example of what happens when people can't manage their money and live beyond their means."

Mr Tapp went on to note: "It costs consumers, businesses and the taxpayer."

He also highlighted the importance of financial education in the classroom, pointing out that this might help future generations to be more careful when it comes to issues relating to money.

The expert added that people should be sensible when considering opting for a credit card product and be aware of how much it will cost them in the longer term.

Those with credit card debt might be able to take advantage of the low interest rate environment that currently exists, Unbiased.co.uk's chief executive Karen Barrett recently suggested.

Posted by Gemma Walker.