Morning Line: We should stop blaming everyone else for our debts

A harsh headline it’s true, but to be honest I’m getting sick and tired of hearing about how the bad old banks keep screwing us all out of money.

Yes, they charge you interest for the most minor of overdrafts, and yes, they are quick to sting you if your account falls into the red.

But let’s be fair here, it is not as if the banks order people to set up an overdraft or make your account go in the red. It is ultimately the individual's fault if they cannot manage your finances properly, and while it is easy to find someone to blame, maybe we need to be a bit more honest with ourselves and how we live, rather than point the finger elsewhere.

One area which really riles me is credit cards. People actively sign up for these in the hunt for fast cash, without considering the consequences further down the line.

Then they moan when they realise – or rather if they realise – that just paying the minimum payment won’t actually clear any of the debts they’ve run up.

Most of us have owned at least one credit card and one would hope you quickly realise that, surprise, surprise, that bit of plastic is not actually your friend and the lender handed it over so they could squeeze profits out of you.

You might argue that the credit card companies lure people in, or that once they’ve got you hooked on credit they change the rates on you, upping the interest you owe them.

Indeed, recent figures show credit cards’ Annual Percentage Rate (APR) – the bill you pay for borrowing money – has actually been rising even as interest rates fall.

MoneyExpert.com said APR had risen to 17.59%, compared to 16.8% in November 2007, while rates have almost halved in the same period.

Today, in a move so political it might as well have been stamped with a red rose, there was an announcement from the secretary of state for business, Peter Mandelson, and the consumer affairs minister, Gareth Thomas, about helping borrowers in dire straits.

In a joint statement between the government and the credit card industry, it was agreed that struggling borrowers should be given extra breathing space.

In essence, those who had contacted debt charities and were in ‘serious discussions’ with the agency about a repayment plan would be given extra time before the bailiffs are sent in.