10 December 2008
One-quarter of the UK population are experiencing financial problems and credit card debts are a major contributor, a new survey shows.
According to AXA, of the 11.6 million people struggling financially, over 3.7 million people believe their credit card debts are too much to cope with.
This may not be surprising considering that figures from Credit Action show that total credit card debt in October 2008 was £53.1 billion.
Data from the UK payments association Apacs also shows that there are more credit cards in the UK than people.
Spokesman Steve Folkard said this demonstrates the need for consumers to budget carefully to make sure they can comfortably afford to repay any debt they take on.
"The average person can make a real and tangible difference to their financial situation by spending just an hour a month taking stock of their finances."
Consumers could also reduce their credit card debts by switching to a zero per cent interest deal.