Will UK consumers ever learn?

The revelation that "shopaholics" in the UK have amassed unsecured debts of £24 billion during the latest economic downturn, are as amazing as they are shocking. It seems that more consumers than ever before are literally spending beyond their means in the hope that a future economic revival will "bail them out".

Unfortunately for many UK consumers the much sought-after economic recovery will not happen in time to relieve them of their newfound financial pressures and many will be forced to take evasive action such as bankruptcy, consolidation loans on some form of agreement with their creditors. One worrying aspect which is making a reappearance in the market is the zero interest credit card which looks attractive in the short term but will ultimately build up further problems for UK consumers.

Even the massive cuts announced by the UK government not appear to have hit home with many consumers in the UK who continue to spend as if the boom times were just around the corner. The traditional boom and bust cycle has been extended somewhat over the last couple of years and many do not expect the UK economy to return to the boom times for up to a decade. It is difficult to put into words the serious nature of the UK economic situation but the sooner that consumers learn these problems will not go away the better.