The lending and borrowing climate is likely to be more cautious in the months following the credit crunch, it has been predicted.

According to the Personal Finance Education Group, elevated reluctance to enter into credit agreements is likely to be observed from both consumers and financial institutions.

Director of policy Alastair Mathews argues that greater financial education could help by raising awareness of how to approach personal monetary management.

"There is bound to be an increase in caution now," he asserts.

"From the lenders - who feel they have probably overstretched themselves a bit - and on the part of borrowers."

Britons looking to improve their finances in the coming months could opt for a debt consolidation loan as a means of minimising their monthly outgoings.

Credit Action statistics for the end of September 2007 show that total debt in the UK increased by ten per cent in the preceding 12 months.

With the nation's total debt burden now totalling £1.38 trillion, debt consolidation loans could be the ideal solution for overstretched Britons.ADNFCR-1287-ID-18377102-ADNFCR

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