I was troubled to learn recently that even with the recent difficulties in the news about people having Debt Consolidation Management problems, credit card debt has risen by 7.1% in April compared to the same month last year.
It’s thought that consumers who haven’t had their credit rating battered by entering a Scottish Trust Deed or an IVA, are taking advantage of carrying out some much needed Debt Consolidation by transferring card balances.
Other people are just not listening to the news and are forgetting that we are still feeling the affects of the deepest downturn for decades. Some may not understand that just repaying the minimal amount each month could mean a repayment term of at least thirty years before the balance has been repaid.
Speaking to a money expert it was explained to me that a lot of consumers don’t understand what it will mean to wait for things. Using the credit card almost feels like magic money that brings immediate benefits. He added further by explaining that before the downturn started it wasn’t unusual for people who had only recently been discharged from a Debt Consolidation Management scheme such as an IVA or a Scottish Trust Deed to be given a credit card almost as a reward for surviving financial boot camp.
It’s all hardly unanticipated when we are surrounded by stories in the press telling us about the country having huge amounts of debt or that members of the public believe that its ok to accumulate twenty to thirty thousand pounds of debt.
Even with these latest statistics it would seem at least the retailers are likely to profit from this increase in spending. The financial system does need people to return to the high streets with their hard earned cash. It truly is a distressing reality though that the public have to drag out us out of recession when the government can’t. The worrying concern is how the spending is being carried out. If its through credit and not disposable earnings, then we might be heading for more difficulties.
The older generation might remember the times when we had to wait for that new automobile or fashion item. It’s a period of time this age group does not appear to recognize. Waiting seems to be an unknown word. Each time a person purchases some goods from a well known chain of stores; they’re asked if they want to go instantly into debt by taking out a credit card. Despite declining we are then told we could save money on our purchases if we accept their offer?
I firmly believe that this is part of the reason we have now found ourselves in this predicament. Could the expression Debt Consolidation or credit card debt be a thing of the past? What do we have to do to drive the clear message home that using credit cards is not always the best way to control our finances?
It’s rumoured that a great deal of people is using credit cards to pay bills on the internet and maybe buy food. The tax man apparently will allow a person to even pay their current tax bill should they feel the need to do so.
Let us keep the spending up but do so with cash or money that we’ve saved up. Maybe we ought to learn a little more?
Tags: debt-management, credit card debt, debt advice, credit wipe, debt-consolidation <BR/>
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