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Consumers warned against over spending on credit cards
02 May 2008
People with debts should take action immediately or prepare to risk bankruptcy, claimed a financial expert.
With the number of Britons in debt increasing due to the credit crunch and rising fuel and food costs, people are urged to think again before using their credit cards.
Personal finance writer Cliff D'arcy said: "It starts with overspending and then you're building up bills and credit cards…until eventually you are forking out a major part of your income each month, just on servicing debt."
By not acting fast, those with debts could risk negative credit ratings and in the most extreme cases, bankruptcy, but there is help available for those who are struggling with their finances.
"You can get in touch with some free debt counselling charities, such as the Consumer Credit Counselling Service and take advice from some of the personal finance websites," said Mr D'arcy.
A report by Credit Action revealed that total UK personal debt at the end of March stood at £1,430 billion.
