The persistant credit crunch and the constant talk of the economy has resulted in the UK developing a debt culture, where we as consumers are as much to blame for debt as anyone else.

As a result UK citizens have been accused of not acting responsibly to save money when and where possible, instead of being contented to be in debt as so many are.

The accusation comes from the chartered financial for Ark planning, Phillio Stevenson, who reckons that a forewarned trend has finally become a reality.

He said: "I think we have had a culture that's developed over the last ten years that [suggests] debt is good. No savings, don't pay for it, just go and get it and worry about it afterwards. There has been a definite trend away from saving."

He added: "I think we are in a position now where people are more concerned with paying off debts rather than saving. It's got to be a good thing to reduce the debt levels."

"That's a more attractive proposition than saving anyway. What's the point in getting one per cent interest on your savings, when you're paying 18 per cent on your credit card bill?

Mountain

In fact British households are now more in debt than those of any other major country in recorded history, it has been revealed.

The figures, published by the Office for National Statistics as part of its National Accounts, underline the scale of the credit crunch in the UK, economists warned

Families in the UK now owe a record amount in debt, official figures have shown. The ratio of debt to income is higher than any other country in the Group of Seven leading industrialised economies, and is sharply higher than the level of incomes five years ago.

Jonathan Loynes, of Capital Economics, said: "With growth already so weak in the first quarter before the full effects of the credit crunch and housing downturn had been felt, the economy looks set to slow significantly further over coming quarters.

"We now expect GDP growth to slow to just 0.5 per cent in 2009, with a very real chance of a technical recession."

Philip Shaw of Investec said: "Although we take the view that the economy will avoid a recession, our confidence is ebbing. Not only are we the highest in the G7, we are the highest a G7 country has ever seen," he said.

Although the pressure is on Britons to help drag themselves out of the current malaise, experts acknowledge that increasing outside factors has meant that everyday living has gotten tougher.

Reasons

The rising cost of household bills and taxes have been blamed for the record number of people finding themselves in debt.

Chris Tapp, the director of the debt charity Credit Action, stated that the need to for Britons to spend more money than ever on the basic necessities, meant that the country could be heading for massive debt problems in the future.

He said: "It could well be that people who need to find that little bit of extra money to get them to the end of the month or pay the gas bill may revert to credit to do that."

He continued: "It may be a reasonable option in the short term, but people have to be very careful they don't find themselves overly reliant on credit, which is unsustainable in the long run and can lead to people getting in real difficulty."

It has been reported household bills have risen from 25 per cent to 31 per cent over the last six years and that the total UK personal debt a stands at over £1.4 trillion.