Brits continue to clock up credit card debt

A recent report has shown that many Brits are continuing to clock up debts on their credit cards, despite facing financial difficulties due to rising costs such as food, mortgage repayments, council tax, and energy bills.

It appears that the credit crunch is not affecting the frivolous spending of many Brits according to the report.

The report also showed that over three million Brits have five or more credit cards that they are spending on.

Much of the personal debt mountain in the UK has been blamed on credit cards, and some people are paying a fortune in interest alone on all of their cards.

One industry official stated: : ‘It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% deals to ensure that they pay as little interest as possible. But anyone who is trying to juggle five or more credit cards and owes money on all of them is in real trouble.’

By juggling a number of credit cards many of these Brits are risking facing financial problems by accruing high levels of debt. Industry officials have predicted that there will be an increase in the number of people declaring themselves insolvent this year, fuelling concerns over the UK’s debt problems.