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British consumer spending using credit cards is out of control. In the last three months of 2007 a record sum was spent using plastic to pay for household expenses. Not only is this poor debt management but it stores up trouble for the future.
Spending on credits cards rose from £92 billion, up from £86 billion in the three months up to September 2007. This has added to the total amount of credit card debt which has increased by £310 million in 2007.
Experts have blamed the easy availability of cheap credit cards deals for the excessive use of plastic. Unfortunately this has led to many misusing their credit cards, using it to meet their monthly bills which is indicative of out of control spending and poor debt management.
The consequence of this credit card binge was that all the debt advice companies and charities were extremely busy over the months of January and February as credit card statements for November - December were delivered.
At Debtwatchdog we believe that credit cards, if used sensibly, are useful. However, if you do not have control over your spending and by this we mean at the end of the month you have spent less than you have earned, credit cards can just make matters worse. The lure of zero percent interest may sometimes be viewed as a good debt management tool but unless you are committed to a debt management strategy you should be careful when consolidating your debts. Consolidating debt, for some people, gives them a false impression that they can afford their debt when in actual fact they are just making matters worse.
Debtwatchdog champions the use of a well thought out debt management strategy to relieve the misery of debt worries. If you feel you need help with developing your own debt management strategy either call us on 0800 970 2698 or post on our debt forum.
