According to the Debt Counsellors, credit card debt accounts for 91 per cent of people’s “serious debt problems”, as Britain’s total credit card debt for the end of September stood at £55.6 billion.
“It’s clear that credit card debt is a major problem and there are literally millions of people who need help with their debt problems,” said John Porter of the Debt Counsellors.
“Too many people are just paying the minimum amount on their bills every month and kidding themselves that this is keeping control of their debt when in reality the interest simply negates those payments.”
In addition to credit card debt, store card debt was also a problem in 41 per cent of cases, worrying as these cards usually have higher interest rates than bank-provided plastic.
National money education charity Credit Action stated Britain’s average interest stands at 16.46 per cent, over 11 per cent higher than the base rate and said that consumer credit lending had risen to £212 billion in September 2006, an increase of 6.3 per cent in the last year.