Will the UK’s debt problem ever get better? You’d certainly like to think so wouldn’t you? Apparently, there may be light at the end of the tunnel. According to a recent survey by a leading national statistics house, consumer-spending patterns indicate a slight decrease as far as credit cards are concerned.

Reportedly, UK consumers are “less attracted” to their cards albeit only slightly. The average person spent approximately £1’890 on their card in 2006, faired against £1’950 the previous year.

The decline indicates that consumers are less likely to yield to the high rates of interest offered through their cards and are opting for low cost loans instead. Although, consumers are still sourcing credit, the fact that they are searching for better deals is positive, or at least that’s what we’re led to believe.

Unfortunately, the reason for the decline in credit card spending is not due to consumers becoming more conscientious where credit is concerned, its because the criteria in order to obtain a card, has been tightened. As a result, people are turning to personal loans to fund their purchases.

Although, the cost of interest associated with a personal loan can be considerably less than a card, a loan is usually used for more significant purchases, and is repaid over longer periods of time. A credit card is typically used for smaller purchases, and is repaid a lot sooner, hence reducing the actual time in debt.

The reason credit institutions are rejecting more people for cards are supposedly to cut debt risk factors to themselves and also to the country. What has actually happened is that the rejections are inadvertently causing people to accumulate more debt, over longer periods of time by turning to personal loans.

As a result the debt mountain is growing faster, and is causing more people to source repayment alternatives such as IVA’s and debt management. So is the debt situation getting better? The short term answer, unfortunately is “no”.