Londoners Found to be Most Likely to Suffer from Credit Card Debt
Tuesday, 25 October 2016
According to research conducted by GoCompare.com, almost seven million adults in the UK have been in credit card debt for at least three years or longer, with nearly one in 10 disclosing that they’ve been in credit card debt for five years or more.
The survey also found that 14 percent of UK adults forecast they will have continue to have credit card debt through the year, with seven percent stating that they will have to ask friends and family for financial support.
Londoners were found to be the most likely to have credit card debt, with two-fifths of them carrying debt on one or more cards. Londoners were also the most likely to bear their debt over a long period of time, with 16 percent stating they’ve been in credit card debt for more than five years.
Additionally, 14 percent of Britons voice worry about their finances, and 15 percent admit that they are often short of funds before. Six percent admitted that they have had to rely on credit cards in order to make ends meet.
Of those surveyed, one in 10 stated that credit card debt and other unsecured debt was their principal financial concern for the next two years.
Matt Sanders of Gocompare.com observed, “When you’re feeling financially squeezed a credit card can be an attractive proposition. Providing you pay off the balance before interest payments kick in, they can effectively give you a short-term, interest-free loan. Credit cards can also be a useful budgeting tool, enabling you the flexibility to spread the cost of your purchases. The danger lies in relying on plastic to buy everyday essentials – then debts can quickly spiral out of control. Worryingly, our survey revealed that 6 per cent of people are using their cards in this way, just to make ends meet.”