Time to consolidate?

Those facing significant debts may be seeking solutions to their problems and one of these may be to switch to an account charging less interest.

Consumers wondering whether a consolidation loan or a different credit card may make an impact might be more convinced in the light of comments on the latest Credit Action statistics for debt in the UK.

The headline figures noted that Britons remain heavily in debt, to the tune of £29,843 (including mortgages).

And this is being added to by plenty of credit card debt, as £1.156 billion of transactions are made on plastic every day.

The sheer cost of credit card debt is at its highest for many year and needs tackling, noted associate director of the charity Joanna Parsley.

She remarked: “Although the amount owed by every UK adult has fallen by approximately £30, in light of rising credit card interest rate – which at an average of 19.1 per cent are now at the highest levels seen in 13 years – paying down debt has never been more sensible advice.”

And with petrol prices set to rise along with changes to tax and benefit rules, consumers will need to act, she added.

Those keen on debt consolidation in March appeared more likely to be those using credit other than cards, according to Bank of England figures.

These showed overall consumer credit was up £0.1 billion, but with a £0.2 billion rise while consumers repaid other borrowing – such as loans – by a net £0.1 billion.

Based on the comments of Ms Parsley, It may be time for those with debts run up on plastic to follow suit.

By James Francis