According to latest reports, more than 4 million Britons are resorting to paying their bills by credit card, thereby falling even further into debt. The report also shows that people are running out of money earlier in the month, lasting just 19 days before running out of money, a day earlier than last year.
Steven Law, president of R3, the Association of Business Recovery Professionals, said: “I see many people who are concerned about their
credit card debts as, worryingly, they rely on them for day-to-day purchases. “Unfortunately, I fear that the number of people worrying
about their levels of credit card debt is set to grow.”
Mr Law added: “Making credit card payments and spending on non-essential items remain the key reasons why people struggle to pay day.”
Worryingly it is believed that the majority of people believe that their financial situation is set worsen in 2011.
“Since we last carried out the survey, the government has issued the Comprehensive Spending Review that announced job cuts and welfare cuts,
so it is unsurprising that fewer people are feeling optimistic about their financial outlook,” Mr Law said.
“In many cases of personal insolvency the contributory factor is a sudden change in circumstance, such as losing a source of income, which
makes repaying outstanding debts difficult. With personal debt hitting record highs and job cuts looming, many people will be feeling
vulnerable.”
One in four people are now showing concern about their debt levels, however many more are not admitting their problems to themselves, allowing themselves to be pulled into the debt spiral.
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