Credit card debt ‘source of most problems’

According to the Debt Counsellors, 91 per cent of people seeking debt advice do so due to credit card debt levels.

John Porter of the debt advice firm said: “Credit card debt is obviously one of the major factors of personal debt in the UK.”

His report comes as other figures show that the growth in new credit card debt is slowing, yet this survey shows that existing credit is causing problems.

This could be due to the fact that the British Bankers’ Association found that the proportion of credit card debt incurring interest in July 2006 was 74.6 per cent, meaning that most holders are adding to their debt burden.

However, advice on becoming debt free can help reduce the effects of this and as the survey shows, many people are turning to external help to clear debt.