Home » Public Relations Articles » Credit Card Spending On The Increase Again, Warns Trust Deed Scotland
Credit Card Spending On The Increase Again, Warns Trust Deed Scotland
Despite reports last year of citizens making huge efforts to pay off debts, credit card spending is now once more on the increase warns Debt Solutions Company, Trust Deed Scotland.
GLASGOW, SCOTLAND, August 28, 2011 /Public Relations PR News/ -- Historically low interest rates led to many able to pay off some of their debts thanks to lower mortgage payments. However, increases in inflation combined with higher costs of living have meant that this situation has reversed, leaving many once more relying on paying basic living expenses with credit cards.
Aviva recently reported that average personal debt levels in every household in the UK have risen by around 10% in the last year, with Barclaycard reporting a 10% increase in card spending over a similar period of time. Moneysupermarket.com has also reported similar figures, observing that almost a third of adults have increased their overall level of debt.
A spokesperson for Trust Deed Scotland, said: "It's financially dangerous to pay for basic living expenses using credit cards, especially if it is to mop up a lack of income. Temporary usage, perhaps to cover a large unexpected bill is understandable, as the card owner can budget to pay the balance off over the months that follow. But where there is too little income to pay for food or heating bills for example, there will be no ability to pay the borrowed money back so the situation can do nothing but escalate month after month."
Many have suggested those with assets are being hardest hit at the moment, but it is not just homeowners who are feeling the pinch. "Private tenants are trying to cope with static wages, cost of living increases and steep increases in rents from their landlords, in contrast to homeowners who have seen their mortgage payments drop," said the spokesperson. "Everybody forgets about tenants, but they probably suffering more than homeowners due to being at the mercy of whatever rent their landlord decides they want to get from the property they occupy."
However, all the indications show that a significant proportion of people will mire themselves deeper into debt by taking out payday loans or borrowing from loan sharks before seeking help.
"Over 200,000 citizens have taken out a payday loan this year and one in five report struggling to pay them back compared to one in ten people elsewhere in the UK," said the spokesperson. "With interest rates as high as 4,000% a year, it's little wonder so many people struggle to pay them back and end up taking up Scottish Trust Deeds or Debt Arrangement Scheme. Payday loan and loan shark companies are raking in more money than ever before at the expense of the misery of Scottish citizens.
Trust Deed Scotland provide help and advice on the Scottish Trust Deed debt solution. With a Trust Deed you can write off up to 90% of your debt and be completely debt free in 36 months. Our experienced advisors are only a phone call away to help you with your debt problems.
Website: http://www.trust-deed-scotland.co.uk
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Press Release Contact Information:
David Baddeley
Trust Deed Scotland
Managing Director
Pentagon Centre
Washington Street, Glasgow
Scotland G3 8AZ
Voice: 0141 345 2904
Website: Visit Our Website |
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