UK credit card debt rises to £72.9 billion

UK credit card debt rises to £72.9 billion

British consumers owe a total of £72.9 billion in credit card debt, recent data provided by the Bank of England shows.

This debt has stemmed from relatively low-interest rates urging families in the UK to borrow more than they have before, following the financial crisis.

The figure is a 5.6% increase, up £68.8 billion since May 2018.

Some credit cards provide opening offers that quickly expire, which could cause some financial complications for millions of families across the UK.

“We are in a whirlwind of debt and consumers are juggling what they owe onto credit cards. This can be a dangerous game to play in the medium and long term, with introductory rates quickly becoming high-interest, making them difficult to pay off,” Dr Roger Gewolb, the Executive Chairman and Founder of FairMoney, commented on the data.

“With such pressure, it’s not surprising that consumers would turn to payday lenders to try to ease their financial burden. We’re over a decade on from the financial crash of 2008– but there is still need to for change,” the Executive Chairman and Founder of FairMoney continued.

“It is time for consumers to take control of their personal finances with the solutions available to them. Taking out a loan to consolidate debts, and not having a number of credit cards, can make the repayment process easier and is often cheaper in the long-term.”

“Millions of people are struggling under high-interest credit options – one of the biggest issues affecting UK society.”

At the end of last year, the Financial Conduct Authority revealed its plans to ban banks from charging high overdraft fees.