Credit problems ‘likely to increase’

The number of people experiencing credit problems “is continually increasing”, reports Thomas Charles & Co.

According to the debt counselling service, people are not taking into account the interest rates charged on credit card purchases when they take out the card. It claims that people often just take the deal they are offered.

“Very few people, in my experience, would consider the actual rate of interest on the card, which obviously is not a very good thing,” said James Falla, director of the firm.

Often people only exacerbate existing debt problems by using credit cards to support their income, he added.

“It’s just pretty much a panic,” continued Mr Falla, explaining that people often know the risks of increasing their debt but borrow more anyway.

By the end of October the average UK adult owed £4,678 on credit cards, motor and retail finance deals, overdrafts and unsecured personal loans, reports Credit Action.

© Adfero Ltd

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