New Survey Shows Half UK Households Rely On Credit Cards and Overdrafts For Monthly Essentials Such As Groceries and Bills
A new survey carried out by the financial services website, Finance.co.uk has painted a bleak picture for homes across the country, with UK households increasingly being forced to use credit cards or overdrafts to cover essential expenses such as groceries and bills on a monthly basis.
Over 50% of those surveyed stated admitted that they regularly used high-interest credit cards or overdraft facilities just to make ends meet each month, with a shocking 32% carrying over more that £10,000 in debt from one month to the next.
Many of the individuals who took part in the survey worried that they would never be completely free of debt, with almost 26% finding it hard to get themselves out of their current financial situation.
30% of those surveyed said they felt judged by companies with regards to the amount of debt that they have accumulated, with a further 23% saying that they do not fully understand the terms and conditions of the credit that they have already acquired.
David Baddeley from Finance.co.uk said ‘These statistics are unnerving, as many households are managing on a rolling credit facility that is costing them far more money to continue to use than it would to take out a loan. Many worry that they would not be eligible for a loan which could help them end their reliance on credit cards or overdrafts each month which in turn, is making finances even tighter.”
The worst affected areas for this type of monthly borrowing are Yorkshire and Humber, closely followed by the North East, London and the North West regions.
Households that do that find themselves in a similar situation each month start can break free of the cycle by better exploring alternatives to costly credit cards and overdrafts and becoming more money wise. A personal finance advisor can help identify ways to save money and break free from borrowing at higher amounts to buy essential items such as the weekly shop.
David Baddeley added, “There are several loan companies who offer loans to those with less than perfect credit scores, so the first option is also to shop around. Consolidating credit card and overdraft debt with a loan means you’ll only have one repayment to manage each month and this is often at a lower amount on a loan than a high interest credit card. This means you can then start to rebuild your credit score while saving money on interest rates.”
Zulay Suarez from leading debt solutions company, Scottishtrustdeed.co.uk believes the data reflects the conversations he is having every week with individuals struggling with debt. “This survey shows the extent to which British people are most definitely not ‘just about managing’. The levels of debt, the way that debt is being used to service everyday essentials, and the acceptance by many of a life of perpetual debt show just how far we have to go in reducing overall levels. And yet, as the data shows – and as the calls to our helplines testify – it’s society’s youngest who look set to shoulder the greatest and longest debt burden.
“In the absence of any political will to changes the situation, it’s essential that organisations like Scottishtrustdeed.co.uk continue to fight to ease the burden on those struggling to manage their debts.”
To find out more, visit www.finance.co.uk/money/loans/bad-credit-loans
View the full survey results here: https://news.finance.co.uk/figures-reveal-truth-behind-the-uk-debt-crisis/