Buy now but will we pay later?

Debt figure includes mortgages

We all know that debt is rising - but is it wrong that banks should give us as much money as we ask for?

Debt in Britain is at record levels. The British Bankers Association say the banks are now owed about a trillion pounds by individuals and small companies.

Our reporter Graham Satchell was at a shop-a-holic's paradise -- the Oracle Shopping Centre in Reading.

We owe as a country about as much as we earn. We owe £5,500 each.

He spoke to the Economist Helen Jenkins who said:

"Debt has been constant over the last ten years."

We need to look at the figures carefully, the trillion figure includes mortgages and unsecured lending. Net wealth is increasing, our value of homes are increasing. But people need to keep a close eye on what they are borrowing. The level of debt, we measured this in terms of households which were struggling to meet their debt, and this has stayed constant at 4% over the last ten years.

He also interviewed Guy Dresser, Editor of ThisisMoney.co.uk

The financial services industry is promoting credit cards all the time, and it is costing us dear.

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