Latest Debt News
Credit cards root of debt problem
06/02/2006 16:23:00
Credit card debt is the most common factor attributing to personal debt problems in the UK, according to a survey examining the nation's debt problems.
The Debt Counsellors Annual UK Debt Survey 2006 shows that a huge 91 per cent of people have debt accumulated on their credit cards, while 47 per cent rely on store cards to take on more money.
Personal loans represented another large contribution to the debt problem, featuring in 84 per cent of examples of those in trouble.
John Porter, senior counsellor with the Debt Counsellors, said: "Credit cards are useful if used in the right way but too many people use them to supplement their income or fund an excessive lifestyle and only pay the minimum amount each month. That's when the credit card debt mounts up.
"The best way to use a credit card is to pay off the balance every month so excessive interest or charges are not incurred. It is also easier to control spending this way."
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