Cut up credit cards if you are struggling, debtors advised

Consumers that are struggling with their level of unsecured debt should cut up their credit cards immediately, a financial services provider has advised.

At the same time they should look to get a consolidation loan and begin paying off their borrowings, according to Mint.

A spokesman for the group said that people will “never really make any progress” with their debts until they take such steps.

“People will tell themselves that they’ll chop their cards up, but in two or three years time they could well be in the same scenario,” he explained.

And he added: “I can only begin to think about how many holidays are being paid for on a credit card – people just think that, even if they haven’t got the money, they can just put it on finance.”

According to Credit Action, total UK personal debt at the end of June 2007 stood at £1,345 billion.

© Adfero Ltd

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