Tuesday 5th of May 2009
Consumers have been advised to avoid shifting their debts onto credit cards in order to avoid the need for help.
Head of personal finance at fool.co.uk David Kuo noted that many people who are being refused loans are falling back on credit cards, but urged people to instead try and pay off what they owe.
Those who are unable to do so without help may wish to take advice on debt management solutions, as these can enable borrowers to reach affordable plans for repayments.
Recent Apacs figures showed that credit card spending increased by two per cent in 2008, reaching £126.2 billion.
And Mr Kuo advised consumers to "live below your means" in order to reduce debt, explaining that rising redundancies could create problems with making repayments.
"People need to be very aware that there is a problem with the economy at the moment, there is a problem with the system," he remarked.
