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Video transcript
New research has highlighted the perhaps worrying number of UK borrowers that have spent more than the last ten years in a position of having debt.Figures published by a price comparison website have shown that millions of people across the UK may have lived in a permanent state of owing money on either credit cards or loans for more than a decade.
The analysis was carried out by the organisation as part of the 50th anniversary of the first use of credit cards by consumers in the UK.
It showed that, at present, 70 per cent of UK adults have at least one credit card to their name and 61 per cent have some form of outstanding balance on this type of lending.
Overall, 37 per cent of UK adults admitted to not being able to clear the balance of their borrowings at the end of each month, with 26 per cent stating that this has been the case for them for at least the last ten years.
In total, this equates to 19 million borrowers across the UK.
Just 28 per cent of UK credit card holders pay off more than the minimum balance on their borrowings each month, meaning there is a real danger that some individuals will never be able to pay off these debts.
Responding to the findings, banking expert at Moneysupermarket Kevin Mountford argued that the rise of the credit has been a considerable boon for consumers during the last five decades.
`We`ve come a long way since the first credit card was created 50 years ago,` he commented.
`Now there is a huge variety of products to suit different types of spending, and consumers have been able to benefit from increasing rivalry between providers.`
However, ensuring borrowers are only lending in a sensible and affordable manner must always be a priority, while the use of measures like debt consolidation and the uptake of nought per cent balance transfer deals can help in this regard.
Indeed, debt consolidation could be viewed amongst other solutions as a positive means for individuals facing large debts to better manage their finances moving forward before they start missing loan or mortgage payments as a result of over indebtedness.
It can enable multiple borrowings to be brought together into one single, more affordable payment each month. Looking at using savings or getting family help are other options that may be able to get you back on top of your cashflow.
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