Credit Card Arrears Account for Over a Third of All Debts

May 2009

34% of unsecured debt is from credit cards, report reveals

New data from leading debt management provider, EuroDebt, reveals that the average unsecured debt over the last 18 months was nearly £29,000 of which 34% is card debt. With a recent report from the Halifax* suggesting that an estimated 217,000 credit cards are hidden from spouses, EuroDebt is warning that this scale of debt could cause major difficulties for families already struggling with an increased cost of living and reduced earnings, if it's kept secret.

"The analysis of a sample cross section of over 4,300 debt management plans with EuroDebt showed that typically our clients have just under 3 credit cards and an average balance of over £3,600 per card" confirmed Kevin Still, Director, EuroDebt. "When looked at in the context of the Halifax survey about hidden credit cards, there could be quite severe consequences for families right across the country if there isn't honesty and openness about the level of credit card debt being incurred.

"We strongly advise that couples should always openly discuss their financial situation. Keeping financial secrets is never a good idea, but in the current economic climate it's especially risky. After all, if the family circumstances suddenly change, perhaps because of redundancy or illness, then the best approach is to talk to all your creditors and make them aware of a possible delay in payments. But, of course, this can only be done if everything is known about all financial commitments."

* Research conducted on behalf of Halifax Credit Cards by GfK NOP. Sample 1,000 adults UK-wide, 27th-29th March 2009.

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