UK Debt Rising for Credit Cards
Several countries are beginning to suffer from credit card debt including the UK. In the UK many of the affluent residents are beginning to struggle just as much as the poorer folks. The definition of affluent in this case is those who have homes, jobs, and a decent salary in their household. These individuals have let debt get so out of hand that they are now struggling with the basics in life on top of the extraneous debts like credit cards.
Credit card debt in the UK has risen some 80 percent in the last twelve months, and especially in the last three. The cause of the credit card debt is partially from the easiness of obtaining credit cards and other credit lines, but it is also due to the credit crunch. The credit crunch caught many by surprise that didn’t have savings stored for the inevitable.
Affluent areas that are most affected are Tunbridge Wells by 234 percent, Cambridge by 55 percent, and Horsham by 48 percent of their residents seeking debt advice regarding credit cards.
Heather Keats is part of Community Money Advice in the UK. She heads an office that has closed its doors to new cases regarding debt as they can’t handle the influx of residents seeking it. She spoke about the types of individuals who are suffering from debt. Teachers, police, bank employees, and service workers are all finding it difficult to own a home, pay the mortgage as well as handle the high credit card debts they have.
These individuals were already stretched tight financially before the credit crunch, and since the credit crunch is causing inflation as well as other things in the economy they are struggling harder. The groceries, fuel, and utilities are rising to the point that a stretched budget cannot cover the increases being seen.
Richard Blake part of Transact said that a semi- professional who owns a home has borrowed at least 25,000 pounds. When asked why, the person couldn’t tell the advice manager. There didn’t seem a point in having the loan, and there are a lot of UK residents in the same predicament.
They are trying at these advice places to help clear up debt by offering budget management plans, but it is hard for self control to take the reins and the UK consumer to stop spending. The statistics are telling the UK economists that the debt has risen to 1 trillion pounds in the last year and is now about 50 percent of that level for 2008.
If you are struggling with debts, especially credit cards, now is the time to take control. You don’t want to suffer further debts because you were too embarrassed. You are in the majority at the moment, but don’t let that majority take you down further.
If a UK resident acts soon enough they could save some money and personal embarrassment, even if it is just switching cards to get a better deal for the next twelve months.