Many consumers 'failing to tackle credit card debt'

17/02/2010

Debt management
plans may be needed to help people tackle mounting credit card bills, as research has suggested that more than one in three people are allowing their credit card debt to build up each month.

The report, carried out by online credit information provider Equifax, revealed that 35 per cent of consumers are only paying off a quarter of their card debts each month, with a further 22 per cent only making the minimum repayments.

Neil Munroe, the company's external affairs director, believes these figures suggest that many families are experiencing difficulties when balancing their finances.

Mr Munroe said: "32 per cent of respondents said that they believe they are now more in debt than a year ago because of an increase in living expenses. And reducing repayments on credit cards appears to be one of the first tactics used to manage a dwindling family budget."

Consumers may be more in need of debt help following the results of a recent survey from Moneyfacts which found that credit card interest rates are at a 12-year high.

Rates are likely to stay high as the banks struggling to balance out the effects of the economic recession.

Posted by Fiona Smith

Tags; Debt Management and Banking,

Regional Debt Advice; Debt Advice Lancing,

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