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During the latter part of 2007 20% of Britain’s younger credit card users opted to transfer the balance of their plastic to another provider in order to reduce their rising debt commitments not just on credit cards but also on personal loans, catalogues and overdrafts. It also found the majority of credit card users were using the credit to fund their day to day living expenses as they could not afford out of their normal income; this included paying for rent, food, council tax and utility bills.
A recent study by one of the UK’s top leading financial comparison sites found more than 1 in 5 of every cardholder aged between 21- 35, actively looked for cheaper, more manageable facilities to manage their card expenditure in order to avoid additional debt. Many people in debt find their situation spirals out of control as they struggle to meet the minimum repayments on their credit cards and other personal loans and when the minimum payment is made the payment is taken up by the interest and late fee charges. This vicious circle continues until the personal debts just become unmanageable that they realise it cannot continue.
However, there are good signs in that the younger card spending generation are reviewing their financial commitments to help manage their debts. A spokesperson for the online comparison firm commented that “credit card spending is one of the most overlooked areas of personal financial management within the UK, but is also one of the most common ways to borrow.”
To help reduce the persona llevel of debt it is important for consumers to allocate as much of their time towards sourcing cheap credit card deals, as they do with other areas of their finances such as mortgage and personal loan usage.
If this is something you can relate to please contact a Debt Plan Direct advisor who will be able to help you on 0845 055 8152. We can advise on all levels of debt and will not ask you to justify the reasons for your debt.
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