I was on Moneybox Live last week, together with representatives from National Debtline and the Consumer Credit Counselling Services (CCCS). Not surprisingly we were taking calls on borrowing and debt.

There were a range of interesting queries but the underlying theme was really how we’re still borrowing badly in this country. Here are a few points I was reminded of during the show:

• There’s a growing number of retired people who have found themselves in debt – often quite crippling debt. For some it would be worth going bankrupt as there’s less likelihood they’ll need to borrow in the future (less than, for example, graduates who will have all sorts of borrowing needs in the future). But for many, if they own their own home, they may need to bite the bullet and downsize in order to pay off the extra. Whatever the solution, though, it’s best to go to one of the free advice agencies such as the two represented above.
• Consolidating your debts is not the answer unless you are committed to closing down credit cards you have emptied and you will not borrow again. People who remortgage or consolidate often find themselves in a worse situation 6 months down the line if they carry on using their old cards or getting more loans.
• If it sounds too good to be true, it probably is. These companies who say they can wipe off your debt because of a loophole in the law should be given a wide berth. Even if they manage it (and only a tiny percentage go through) that debt will stay on your credit record as ‘unpaid’ which will make it very difficult and expensive for you to borrow in the future. I really don’t like this whole business on principle.
• Get into credit unions. I really wish more people knew of the value of credit unions for small-scale, short-term borrowing in particular. They’re a great alternative, particularly if you’re considering pawn brokers or, worse, payday loan companies or doorstep lenders. Get into your local credit union, start saving with them and you’ll find them a wonderful resource for all kinds of banking needs.
• Get some serious and clear advice on how to borrow and how to get out of debt in our debt section and borrowing section. We’ve got loads of good help there and it’s really not boring – honest!