It’s true. At the end of 2008, there were more credit cards in the UK than there were people according to APACS. Today, the UK collective credit limit on credit cards is £158bn, that’s an average credit card limit of £5,129 per person and with the average credit card interest rate sitting at 18.24%, it’s not surprising that we have so many of the population getting into severe credit card debt.
Further research from Moneysupermarket.com unearths the extent of the problem:
1 in 5 of the UK population carries more than 3 credit cards
17% of credit card holders use their cards at least once a day
14 million consumers are using their credit cards to fund day to day expenses
Furthermore, in the next 24 hours, due to debt problems:
390 people will be declared insolvent or bankrupt
The Citizens Advice Bureaus in England & Wales will deal with 9,500 new debt problems
219 mortgage possession claims will be issued
This increased reliance on credit cards means inevitably there is a high risk of many people getting into serious debt. If you are in financial difficulty due to credit card debt or any other type of debt and you need help, talk to us. Whether it is debt advice, a debt management plan or a more formal debt solution, we can find the right one for you and help you get back on the road to financial freedom.
All statistics were taken from Credit Action – May edition