Don’t get relaxed over debts, charity warns

The Consumer Credit Counselling Service (CCCS) has warned people not to become complacent regarding the repayment of debts.

It comes after Unbiased.co.uk declared February 20th 2010 Debt Freedom Day.

According to research carried out by the website, now is the time of year (the first 50 days of 2010) when members of the public have earned just enough money to cover the interest owed for credit cards and personal loans.

The CCCS warned, however, that people need to be aware the actual repayments still need to be made.

Laura Carver, the charity’s helpline manager, highlighted the signs of mounting financial problems that must still be watched out for.

They included “only making the minimum payment on your credit cards each month, not knowing the total debt you have, lying to your friends or family about your spending and debt and using credit to repay debt”.

The warning follows the findings of a recent survey conducted by moneybasics.co.uk that reported nearly half of adults in the UK admitted their health was being adversely affected by financial worries.

By Joe Shervin