Trumpo spent the day in London and I have to say - it’s hard to say.

On the train down to the big smoke I found myself reading the Times at silly o’clock this morning and it appears, following a recent report, that total borrowing on credit cards seems to have increased yet again this last month.

So is Mr and Mrs UK PLC rushing down the high street and bashing the plastic on this seasons must-haves? It appears not according to another report. It seem’s doomy and gloomy for the high street retailers and fears for the christmas trade is being widely reported. So it seems Mr and Mrs UK are not currently big spenders either now or in the very near future.

So are they a saver? It also appears not. Whilst the silver haired surfers are moving their savings from one bank or building society to another, capitalising on great savings rates currently being offered, there is a continuing reduction in savings from the recently mortgaged, young and asset starved sub-40 somethings.

The current high profile banks and building societies, operating within the current credit crunch environment are now offering higher savings rates to the older generation to bolster their savings reserves. These savings then provide them with capital to continue lending to the younger generation at a now higher rate, providing a jucier margin and the real bubbly and cherry on the top for the shareholders, selling overly expensive insurance policies to those with minimal if any savings and who can ill afford the now higher costs of borrowing.

So why has credit card borrowing actually gone up? Well I’m afraid to say, credit cards are being used heaviest by a large perecentage of the sub-40 somethings to actually just live and get by and this is why the debt mountain will continue to rise. We have a scary position in the UK today whereby people are so aggressively robbing Peter VISA to pay Paul AMEX. When up to their limits there’s nowhere else to go, apart from getting help.

Trumpo have debt counsellors to help provide free impartial advice if need be, whatever your situation.

Where will it end?

Well it’s actual in the hands of the banks who have lent the £1.4 trillion of cosumer debt. I have to acknowledge that the banks are being proactive, some more than others, and they are attempting to the put the brakes on further unaffordable borrowing by reducing limits on thousands of peoples credit cards as you read this. The targets of the banks activity in this area are mainly the vulnerable clients that in today’s higher interest environment can only now afford to repay a smaller credit card debt than when the rates where lower.

For those in real trouble , the banks, credit card companies and finance houses are in general agreement that their over-indebted customers can go into debt management or IVA plans, therefore reducing or freezing the interest in most extreme cases. These debt and IVA plans allow people to stop the rot and pay back what they can afford without worsening their overall debt position.

Trumpo asks the banks to please keep up the good work and treat these customers fairly.

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