Thursday 2nd of December 2010
People using credit cards to cover their living costs may start asking individual voluntary arrangement FAQs if they feel they have built up too much debt and can no longer afford to pay it back.
Use of plastic is becoming a "cultural norm" within society as more people are turning to it to make purchases, said Richard Sorsky, a money advice co-ordinator at the UK InsolvencyHelpline.co.uk.
"People have debit cards but they're scared to use [them as they] don't offer protection against fraud or insolvency that a credit card does," he added.
However, people relying on the financial products may find the amount owed stacks up over a period of time if they cannot meet the minimum repayments.
Earlier this week, the latest UK debt statistics released by Credit Action found the total amount of personal debt owed by the UK stood at £1,452 billion, meaning individuals owe more than the country produces over the course of a year.
By Kimberley Parsons
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- IVA FAQs could benefit Brits in household debt
