Debt solutions for credit card debts

A managed debt solution, like a Debt Management Plan (DMP) or an IVA, could be a requirement for consumers if they fail to beat their dependence on credit cards.

New research by Bright Grey suggests that one in five consumers are using credit cards to fund lifestyles which are beyond their normal means.

While the most popular excuse for doing this is that customers ‘just have to do it' – 21 per cent of people say they enjoy their excessive lifestyles too much.

Despite the danger of getting into debt problems such as bankruptcy, around 11 per cent of people also admitted they used credit so they can keep up with friends.

Kevin Still, Director of Atlantic Financial Management says "The risks of a debt spiral is very acute if you are just trying to 'keep up with the Jones' next door.

Serious debt problems can quickly develop when card providers increase interest rates, as they have been doing, and access to further credit becomes more restricted as lenders monitor your repayment performance".

Debt problems – payday loans

15/03/2011

Once again British consumers struggling against debt problems have been told to avoid resorting to t ...

Debt problems: Interest rate threat

14/03/2011

An increase in interest rates could plunge hundreds of thousands of households into debt problems. < ...

Debt problems: borrow to pay debts?

08/03/2011

People thinking about borrowing money in a bid to alleviate their debt problems have been told only ...

Debt problems – pay off debt

07/03/2011

People with debt problems currently considering the best ways to deal with them, might be interested ...