30 September 2005
Britons have thousands of pounds worth of debt on their credit cards, an influential author has said.
Martin Lewis, author of the best-selling Money Diet, told Reuters that financial illiteracy, spending compulsion and dyscalculia were to blame for the problem.
"I ceased being surprised by 100-grand debts two years ago. It's very common," said Mr Lewis.
According to Reuters, the Consumer Credit Counselling Service puts the average debt of its clients in 2005 at £28,600.
"About one per cent of the people we have on debt management plans have debt levels over £100,000. It's what we call extreme levels of debt and it's certainly a phenomenon of the last couple of years," said CCCS spokeswoman Frances Walker.
"For my current series so many people applying (to appear on the show) had debts in the £50-, 60-, or 70,000 bracket that we're almost inured to it," added Mr Lewis.
Mr Lewis concluded that financial self-discipline, rather than government intervention, was the key to solving the matter: "The money makeover shows on television that tell people to cut up their credit cards are telling people the wrong thing.
"I believe in making people understand financial complexity -- of balancing the equation -- so that consumers have the resources and the intelligence to play companies at their own game."
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