Credit Card Debt Soaring
Following a decade-long borrowing spree, Brits owe a staggering £72.9 BILLION on credit cards according to new figures from the Bank of England. As well as this staggeringly-high credit card bill, overall consumer debt has reached an all-time high of £217.3 billion!
Why are the debts so high?
This decade-long surge in borrowing resulted from ultra-low interest rates which were introduced after the financial crisis, intended to get people spending and kick-starting the economy, it made it much easier for people to borrow large amounts of money, without being too much of a burden to repay.
The growth in this debt explosion has slowed in the past three years, hopefully showing a sign that people are starting to deal with their debts, rather than continuing to spend. Although, it’s also possible the reduction is due to banks cracking down on excessive credit card lending due to fears that people would begin struggling to repay their debts.
Struggling With Credit Card Debt?
People’s situations change. Despite the common belief that people are simply over spending, the changing of someone’s situation is by far the most common cause of debt struggles. No one applies for a £5,000 credit card thinking they won’t be able to repay it, but redundancy, poor health, divorce, and hundreds of other every-day occurrences, can severely change our situations.
As you can see from the figures above, a LOT of people are in debt, and a LOT of these people are struggling to repay.
Don’t be one of them any longer, talk to our friendly advisers today and see how we can help. There is no cost for our advice, and there is absolutely no obligation to use any debt solution we may suggest to you.
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