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"UK consumers get further into debt with credit cards"

By admin | April 14th, 2009 | Credit Cards

According to a recent report many consumers in the UK are getting themselves further and further into debt on their credit cards, with the value of interest payments on credit cards said to have now reached the £9 billion mark.

The figures were released by Abbey Credit Cards, and according to the data the average consumer now has debts of over £3250 outstanding on credit cards.

The data also showed that older consumers were now more likely to get themselves into a significant amount of credit card debt, with the figures showing that around 77 percent of people aged fifty five and over now had at least one credit card.

Whilst many people want to try and get rid of their debt or stop getting into any more debt in the current financial climate, finance struggled and lack of other credit options has led to people increasingly using their credit cards to fund day to day purchases and even to pay bills.

One industry official said that in the current economic climate it was important for people to get their priorities right and start repayment the debt off as quickly as possible, ensuring that the paid more than the minimum repayment on the credit card debt and avoiding getting into any further debt. However, he also said that the lender had a responsibility to also ensure that credit was not being doled out to those that were already struggling.

He said: “The banks are still handing out credit cards as an essential item for people and it is not unusual for people to have two or three credit cards in their back pocket. The sooner you pay off the debt to your lender, the sooner you can start generating wealth for yourself.”

Tags: credit card spending, credit card debt

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