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PM calls on Britons to pay credit card bills

PM calls on Britons to pay credit card bills

Category: Credit cards

Updated: 05/10/2011
First Published: 05/10/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

David Cameron is to call on Britons to pay off their credit card bills to help the UK out of its economic problems.

The order will come as part of the PM's speech that will close the Conservative Party's 2011 conference in Manchester.

Mr Cameron is expected to talk up the UK , saying that the economy will be turned around and will warn against the country becoming 'paralysed by gloom and fear'.

Labour's call to slow the pace that the coalition is cutting and introduce tax cuts will be rejected, insisting that the 'ship can be turned around' under the current plans.

The Prime Minister will also offer people some sage financial advice, telling them to pay off their credit and store cards.

Addressing the conference, Mr Cameron will tell party members that the public should be told of the 'overall economic situation'.

"People understand that when the economy goes into recession, times get tough. But normally after a while things pick up," he will say.

"Strong growth returns, people get back into work.

"This time, it's not like that. And people want to know why the good times are so long in coming.

"The answer is straightforward, but uncomfortable. This was no normal recession. We're in a debt crisis. It was caused by too much borrowing by individuals, businesses, banks and most of all governments.

"The only way out of a debt crisis is to deal with your debts. That means households - all of us - paying off the credit card and store card bills. It means banks getting their books in order."

The call to pay off credit cards is to expected raise the ire of the public which is struggling with high utility and fuel bills and a rise in the cost of food and other essentials.

The Government has defended the comments saying they are an illustration of how the coalition is working to pay down the public deficit, but the Money Advice Service says that many people are struggling to pay their debts as their situations change.

"We speak to many thousands of people each month who have lost their jobs, fallen ill, had to take time off work to care for a loved one or broken up with a partner," said Joanna Elson OBE, chief executive of the Money Advice Trust.

"Life changes like these can cause devastating financial shocks in someone's life, and can make it very difficult to meet previously comfortable credit agreements."

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