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According to creditaction.org.uk there were more credit cards in circulation in the UK than people, with 63 million cards compared to a population of 62 million. Demand for debt help is already at an all-time high, with the Citizens Advice Bureau reporting that they are dealing with over 8000 new debt advice enquiries each day. With the high numbers of credit card applications still being approved, is it possible that there could be even more people suffering with debt problems in the future?
Credit card debt is particularly concerning, because this type of borrowing carries a much higher interest rate than a personal loan if the balances are not cleared each month. The current average interest rate across all cards is 18.84% which is a staggering 18.34% above Bank of England base rate. As long as people clear their balances each month they will be subject to no interest whatsoever, however according to the British Bankers Association 70% of credit card balances are not paid in full each month.
Worryingly, those already high interest rates attached to credit cards could be about to rise yet further. The reason is, the banks have recently suffered huge claims for compensation in regards to the mis-selling of Payment Protection Insurance which has cost them billions of pounds. The banks have had no alternative but to attempt to replace that lost money by hiking the charges not only on credit cards but also on overdrafts too. Those who have a lifestyle living off credit cards and who are constantly overdrawn could be the next generation of debt advice seekers when the price of higher interest charges are felt in the coming years.
One solution to avoid a potential future catastrophe could be to bite the bullet, cut up the cards and switch to a bank account with no overdraft facility now. Although this could carry some short term pain, it could well mean that people who take this action now can avoid the need to seek help in years to come.
Anyone already suffering with debt problems and who is currently pondering seeking some sort of debt advice may well benefit from the debt help services provided by UK Money Solutions. They are experts in solving debt worries before they become a major problem and can be contacted free on 08000 748 059.
UK Money Solutions
http://www.ukmoney-solutions.com
203 Murdoch Chambers
2nd Floor
153A Corporation Street
B4 6PH
Phone
08000 748 059
Credit card debt is particularly concerning, because this type of borrowing carries a much higher interest rate than a personal loan if the balances are not cleared each month. The current average interest rate across all cards is 18.84% which is a staggering 18.34% above Bank of England base rate. As long as people clear their balances each month they will be subject to no interest whatsoever, however according to the British Bankers Association 70% of credit card balances are not paid in full each month.
Worryingly, those already high interest rates attached to credit cards could be about to rise yet further. The reason is, the banks have recently suffered huge claims for compensation in regards to the mis-selling of Payment Protection Insurance which has cost them billions of pounds. The banks have had no alternative but to attempt to replace that lost money by hiking the charges not only on credit cards but also on overdrafts too. Those who have a lifestyle living off credit cards and who are constantly overdrawn could be the next generation of debt advice seekers when the price of higher interest charges are felt in the coming years.
One solution to avoid a potential future catastrophe could be to bite the bullet, cut up the cards and switch to a bank account with no overdraft facility now. Although this could carry some short term pain, it could well mean that people who take this action now can avoid the need to seek help in years to come.
Anyone already suffering with debt problems and who is currently pondering seeking some sort of debt advice may well benefit from the debt help services provided by UK Money Solutions. They are experts in solving debt worries before they become a major problem and can be contacted free on 08000 748 059.
UK Money Solutions
http://www.ukmoney-solutions.com
203 Murdoch Chambers
2nd Floor
153A Corporation Street
B4 6PH
Phone
08000 748 059
Additional Links :
Debt Management
debt advice
debt help
Contact Info
Managing Director,Kevin FielderPhone : 08000 748 059
Email : kfielderukms@gmail.com
