Recession 'encouraged people to pay down debts'

Consumers have focused on paying down some of their debts in recent times because of the impact of the recession, according to one expert.

Meanwhile, Pierre Williams, MoneyExpert.com's head of research, also believes that the economic climate may have altered the approach taken by some firms that actually offer credit to people.

He commented: "In many ways the recession has shocked borrowers into action with job worries meaning borrowers have looked to pay down debts rapidly."

The expert has suggested that those hoping to get credit in the near future may see a "cautious" approach taken by lenders, as the UK's economy takes time to recover.

His comments follow Office for National Statistics figures released earlier this week, showing that the UK has finally exited its recession.

Gross Domestic Product is said to have gone up by 0.1 per cent during the final three months of last year.

Posted by Tom Burroughs.