Payments firm Apacs has released reports showing that in the second quarter of 2007 spending on credit cards was 7% higher than figures from this past year which supports the idea that it is really easy to spend using credit cards and that this is reflected in the way UK consumers are spending and taking risks they should not.
All of this even though the popular use of debit cards, that takes money out directly from an account, has increased and become more popular. This supports the idea that people do not have a problem with borrowing sums of money that they do not have or is not theirs and are not worried about the high and rising interest rates on the credit cards making repayment even higher.
It is not uncommon to see individuals that have unsecured debt as high as £50,000 between five or six credit cards and on top of that a house mortgage to pay, says Mark Allen a UK chartered accountant. Most of the UK consumer debt is made up of these types of debt that was reported recently to have reached over £1.3 trillion and with the debt at this level, savings levels are going to be quite low.
Many people are finding it difficult to make payments but you should fight the urge to declare bankruptcy because there may still be hope. Declaring bankruptcy will make the payments go away but it can be up to 15 years that you will have a black mark on your credit score.
You can possibly use the credit cards to sort out you debt and consolidate all the debt into one and make the interest payments lower. There are credit cards that will charge 0% interest for balance transfer and you can open these cards and transfer balances to them and save on paying such high interest rates.