The number of purchases on credit and debit cards grew at the quickest rate for the best part of a decade in May; something that could lead to a need for life style adjustments or even debt consolidation if they get out of control.
Figures from the UK Cards Association show there were 990 million transactions in the fifth month of the year, up from 981 million in April. The new number is the highest rate since January 2005 and could lead to the next set of figures showing purchases pass the one billion mark.
That put the growth in volume at 9.1 per cent, higher than the increase in value, which came in at 7.5 per cent to take it to £47.1 billion. That`s worth noting as it shows that people are paying for a greater number of lower value items on their cards, be it out of choice or necessity.
Credit cards can be a useful way of managing your spending if you pay them off on time and in full or use them as a short term finance solution, but if you begin to struggle with repayments as the balance grows so will the minimum payments and you will need to pay more than that to bring the debts down.
One route is to use debt consolidation loans to take your unsecured debt - like credit card expenditure - and reduce the amount you have to pay back each month so it`s more manageable. Doing this will usually also increase the time you have to pay it back, which may lead to more interest being due overall, so only borrow what you need.
Our finance team will work with you to find a refinancing loan from our panel of lenders and any found will be presented on a no-obligation basis too, meaning you can turn it down if you want to shop around more or prefer alternative debt solutions that may be available, such as debt management plans and Individual Voluntary Arrangements.
Find out more about debt consolidation loans at firstchoicefinance.co.uk or call us on 0333 003 1505 or 0800 298 3000.
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