Debt advice still needed by many

Personal debt racked up from credit card use is the most worried about financial problem, according to new research.

The stats from Datamonitor show that a third (32 per cent) of consumers are concerned about their plastic bills, and many may need debt help as a result.

Roderick Logan from the analysts believes that this is the case because consumers use their credit cards daily, whereas overdrafts and other forms of personal loan aren't as noticeable on a day-to-day level.

However, despite this fear, Britons are expected to increase their personal debt by taking on more consumer credit in 2011.

Whilst the amount borrowed this year is expected to have fallen to £24bn, next year's figure is expected to go up to nearly £26bn (25.8bn).

Kevin Still, director of Atlantic Financial Management, says: "Credit card debts are a real concern as most of the providers have been increasing their interest rates through the recession on new transactions and cash withdrawals.

"Credit controls have become tighter and balance switching isn't always possible. Too many people are just making minimum contractual payments and in many instances just servicing the accrued interest. This may lead to a debt spiral and the need for debt advice."

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