Credit card debts increase

17/03/2008

A recent survey carried out has proven that more Brits are creating larger debts on their credit cards.

Regardless of current financial conditions, rising costs such as food, mortgage repayments, taxes, and bills, cardholders need to take their main priorities in to consideration.

The credit crunch is not disturbing the inconsequential spending which majority of British people are carrying out.

New data gathered showed that nearly three million Brits have more than five credit cards, spending vigorously; it has caused the UK economy to slip into debt problems.

Most debt has been created by credit cards; some people are paying a large sum on interest alone.

A spokesman stated: ‘It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% deals to ensure that they pay as little interest as possible. But anyone who is trying to juggle five or more credit cards and owes money on all of them is in real trouble.’

Industry officials have suggested that this year, there will be a number of people declaring themselves in receivership.