Paying off last year’s debts contributing to budget strain

February 28, 2008 by admin  
Filed under News, News-Banking

Paying off last year’s debts and current levels of inflation are both using up consumers monthly budgets, one debt expert has claimed.

Debt Action said as inflation has kicked in, people have found that more of their take-home salary is taken up with paying back pre-Christmas loans as well day-to-day expenses.

Chris Tapp, director of Credit Action, said that increasing numbers of consumers have been forced to use their credit cards to fund their everyday lifestyle.

“This is a very worrying scenario to find yourself in and at that point – when you start using your credit card as a necessity, or you’re unable to pay it off month by month – you should go and get help,” he stated.

Credit Action also warned that in the long-term, consumers cannot use a credit card to pay off a mortgage and this is a “worrying indicator” for a spenders’ financial future.

According to figures from Debt Help UK, up to 74 million credit cards have been issued in Britain and by 2009, credit card possessions are estimated to rise to 99.2million cards.

Tags: Stoozing, card, personal finance, christmas, Chris Tapp, consumers monthly budgets

Related Entries

  • Cutting your bills in the New Year
  • This year has been something of a volatile one for most of us, with the global credit crunch, rising unemployment, rocketing inflation, soaring bills, increasing food and petrol prices, and various other factors all adding
  • Figures show increase in bankrupt pensioners
  • Recent figures have shown that the number of pensioners in the UK that are going bankrupt has doubled in the space of five years. There are now twice as many pensioners declaring themselves bankrupt as
  • Increase seen in debt consolidation loan enquiries
  • According to a recent report the number of enquiries relating to debt consolidation in the UK has been rising, as consumers struggle to cope with their debt and look for solutions to try and ease
  • Sort your budget out for 2010
  • Like many other people you may have experienced a great many difficulties in terms of your finances this year, and this is partly because many of us were not prepared for the onslaught of financial
  • Family debt set to spiral
  • It has been suggested recently that family debt is set to spiral out of control over the next four years, with families expected to be struggling with average debts of around £84,000 per household. A
  • Millions have a year or more of debt on their cards
  • It has been reported that millions of borrowers in the UK have outstanding credit card debts of a year or more, with many only managing minimum repayments on their debts in the current outstanding climate.
  • Are you looking to consolidate your debt?
  • The start of the year is a time when many people decide to try and sort out their finances, and this is because they want to look forward to the rest of the year without
  • Consumers could benefit from consolidating debt in 2011
  • According to industry experts many people that are hoping to streamline their budgets over the coming year may be able to benefit from consolidating their debts with the use of a low rate consolidation loan.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!