Credit Card Debt in the UK

Credit cards have always been a big source of personal debt, particularly for young people. The convenience of using a credit card means that people will find themselves owing more money than they had anticipated. A credit card can be used to purchase almost anything, which can often be too much of a temptation for some. The idea that the money does not have to be paid until a later date can seem attractive at first, however it is this attraction that can lead to huge financial problems. You should seek our IVA debt advice when it looks as though this may get out of control.

If you are struggling with credit card and other unsecured debt, please try our free debt calculator to whether an IVA will be suitable for you.

If your credit card debt is getting out of control please contact X-debt as soon as possible for some free credit card debt advice.

It was recently reported that there has been an increase in credit card debt in the UK, and in April it was seen that there was an increase of 9% in the people in debt due to credit cards. This shows that this kind of debt is a steadily rising problem, and the only way it will decrease is if people begin to make a conscious effort to change their spending habits.

Before credit cards were commonplace it was much easier to avoid unnecessary debt, as most people could only spend the money they actually had in their hand. Of course there were cheques and loans, but these were not nearly as instantaneous as a credit card. One of the main reasons why people will find themselves in credit card debt is due to the build up of bad spending habits. A lot of people’s behaviour towards spending can be cause for concern. Purchasing things that we don’t need and cannot afford has become commonplace. Eliminating this habit will go a long way to avoiding debt.

Another bad habit among those with credit cards is when they avoid paying their balance at the end of a month. This balance is then added on to next months, but you are also charged further interest on it which can create problems. Also, some credit card holders will have very high limits, which furthers the potential for big, unaffordable spending. Many of us do not anticipate the fees that accompany credit card use such as interest and annual fees. In this way it can be a very costly piece of plastic in your pocket.

Some people will also fall into the danger zone when their credit card company approves them for a higher limit. These limits can be very attractive on paper, however most people do not foresee the prospect of financial hardship that can go with them.

This is not to say that we should avoid credit cards at all costs, we simply need to develop healthier, more restrained habits towards using them. Credit cards can come in handy in an emergency, however using them for the majority of the purchases we make that can just as easily be made with cash is where debt can begin.

If you have found yourself with unmanageable credit card debt then you can contact us for some valuable free debt advice. It can make all the difference between paying off your debt and seeing it rise further.