The nation is "addicted to debt"

The current financial downturn is a result of 14 years of "binge borrowing" and the nation is now "addicted to debt", it has been claimed.

It is right for the government to try and act on the situation but cutting off cash flow and making people go "cold turkey" is not fair, explained head of personal finance at money website Fool David Kuo.

Now, he added, the public are being encouraged to borrow again, which was the cause of the situation in the first place.

Mr Kuo went on to say anyone with a mortgage, credit card, overdraft or loan was individually responsible for paying it off bit by bit.

"With a lower interest rate, some people will be able to overpay on their mortgage and that will not only help themselves but also the wider economy."

With the current market, people who can afford and are looking to buy an overseas property may wish to use cash rather than take out a loan or mortgage. An international money transfer system could assist them with this payment.

According to a recent survey by the Association of British Insurers, nearly three-quarters of consumers think that the benefits of saving have fallen over the last year.