Caravan Insurance

Brits battling to pay off all of their debts should not undo their good work by using credit to finance a caravan trip, judging by a new report.

Although more than a quarter of Britons have taken out a loan in order to consolidate existing debts, two thirds of these borrowers have continued to plunge themselves into arrears, such as through taking out more on their credit card.

Caravan Insurance

It seems that for many people owing money is simply a way of life, but moneysupermarket.com's study has cautioned against this attitude, warning that covering old debts is not a license to go out and accrue new ones.

Head of loans and debts Tim Moss explained: "Debt has certainly become the common curse of modern times.

"Whereas 40 years ago being in the red was considered a last resort, it seems many of today's Brits are much more accustomed to taking on debt - although actually being able to control it is another thing."

While nearly a third of borrowers who have consolidated their debts are worried about what they owe, more than a quarter anticipate that they will never get out of arrears and claim that they are not overly concerned by this fact.

The prevalence of this attitude with regards to holidaymaking was highlighted by a recent study by Yorkshire Bank, which showed that one in three vacations booked in early 2007 was put on a credit card.

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