Home Business NewsBusiness Londoners are the most likely to have credit card debt

Londoners are the most likely to have credit card debt

by LLB Reporter
4th Oct 16 10:31 am

Survey reveals

Nearly seven million UK adults have had a credit card debt for the last three years or longer, with nearly one in 10 admitting to a persistent debt of five years or more on their plastic.

According to research by GoCompadre 14 per cent of UK adults expect to have a credit card debt throughout the next year whilw seven per cent will need to ask friends and family for financial help.

Londoners were the most likely to have credit card debt with two fifths of those surveyed admitting to having a balance on one or more of their cards. They were also the most likely to carry debts over a long period of time, with 16 per cent of Londoners with a balance saying they have had a credit card debt for more than five years.

In addition, 14 per cent of Brits say they are seriously worried about their finances with 15 per cent saying they tend to run out of money before the end of the month – a significant minority (six per cent) admit to relying on credit cards to make ends meet.    

One in 10 of those surveyed said that their credit card and other unsecured debt was their biggest financial worry for the next two years. 

Matt Sanders head of money at Gocompare.com, commented; “When you’re feeling financially squeezed a credit card can be an attractive proposition. Providing you pay off the balance before interest payments kick in, they can effectively give you a short-term, interest-free loan.  Credit cards can also be a useful budgeting tool, enabling you the flexibility to spread the cost of your purchases.  The danger lies in relying on plastic to buy everyday essentials – then debts can quickly spiral out of control.  Worryingly, our survey revealed that 6 per cent of people are using their cards in this way, just to make ends meet.  

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