Tuesday 28th of April 2009
Consumers are continuing to spend on credit cards despite the problems being faced in the economic downturn, figures have revealed.
According to UK payments association Apacs, this form of finance accounted for more than £126 billion in 2008 - a rise of two per cent compared to the previous year.
Those who are now struggling to repay these debts due to changes such as a loss of income may wish to consider seeking IVA help in order to freeze interest and work out a payment plan.
Sandra Quinn, director of communications at Apacs, remarked: "Despite what started to happen across the economy last year, these latest figures don’t reveal any marked changes from the annual trends we’ve seen over the past few years."
Consumers needing to adopt debt management techniques were recently urged not to consider making cash withdrawals on their credit cards, with uSwitch.com noting that particularly high interest rates tend to be charged for this service.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Debt consolidation 'getting more difficult'
