A recent survey conducted by The Debt Counsellors has stated that credit card is one of the major contributing factors to consumer debt in U.K. The research further stated that credit cards contributed to around ninety percent of the serious debt problems whereas store cards were responsible in around forty percent of the cases. It is a problem which is not limited to a few but is affecting millions of residents of U.K.
John Porter from the Debt Counsellors stated:
Too many people are just paying the minimum amount on their bills every month and kidding themselves that this is keeping control of their debt when in reality the interest simply negates those payments.
This could probably be attributed to the easy availability of credit and the lack of savings habit among them which is causing them to fall in such a critical situation. I believe that educating consumers is the key to solving this problem.
