New figures have been released suggesting that credit card and loan debt in the UK now totals an estimated £1,400 billion. That figure equates to roughly £23,000 of debt for every adult and child in the UK, with credit charities lamenting high profile TV shows for promoting the use of credit cards and reckless spending. Credit Action’s Christ Tapp said, ‘We grow up expecting to get a credit card or store card at the age of 18. It's almost become a right’.
One consumer who found herself facing repeated credit card and store card bills was a 28 year old woman from Leeds called Lindsay. Having purchased a pair of earrings for just £4, Lindsay ended up paying £80 for them as the interest kept rolling over.
19 year old Abi faced similar problems, having spent her way into £5,000 of debt. Abi revealed, ‘I took out [a payday loan] for my dog because I fell in love with her. I didn't have any money as it was the middle of the month, so I took out a payday loan for around £150. It's the worst thing you can do, you apply online, you give them your details and they'll put £100 into your account. The interest rate works out at about 1250 per cent.’
UK Credit Card and Loan Debt Hits GBP1,400
Wed, 03 Dec 2008
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