19 February 2009
Two out of ten British consumers say they are not confident that they will be able to pay off their credit card debts this year, according to a new survey.
Virgin Money found that 7% of people are unconfident about reducing debts on plastic in 2009, while 12% are very unconfident.
Their sentiment is perhaps down to fears about unemployment and wage cuts or rising costs, with almost one in three of those questioned expecting a drop in their disposable income this year.
Rob Clifford, UK Managing Director of Virgin Money, said the economic downturn is hitting some households hard.
However, he insisted there is cause for optimism, as some families are able to pay their bills by adopting a more prudent approach to spending.
Those worried about credit card debts could switch to a 0% balance transfer deal, allowing them to make inroads into their arrears without accumulating more interest.
Ian Boden-Smyth, press officer at the UK Insolvency Helpline, said recently that consumers can avoid hikes in credit card interest rates by taking out balance transfer deals and moving their debts to another card.