Government warns against rising credit card debt

The government has issued a warning about the country’s rising credit card debt.

Conservative Lord Marlesford raised this issue during question time and stated that the amount had increased by £8 billion over the last 12 months, meaning card holders needed to pay an accumulative £900 million in interest every month.

He implied that, had the credit companies not altered their balance sheets, there would be a “large reservoir of very toxic debt”.

Speaking for the government, Lord Faulkner of Worcester acknowledged that such businesses were not helping the situation.

He said that in some instances, these corporations were “behaving irresponsibly” and “encouraging people to get into debt”.

Lord Peston, however, squared the blame at the individuals who take out the offers, as they should be aware they need to repay it.

Earlier in the week, Peter Gerrard from Moneyextra.com claimed responsibility for the high figures should rest with the government, who needs to cut credit card rates to ease the debt.

By Joe Shervin