Credit cards 'cause debt problems'
Credit cards 'cause debt problems'
Wednesday 7th January 2009
Although conceding that it can be "very difficult to live without a credit card" in modern society, the Thrifty Scot states that cards are "the leading cause of debt problems" among British consumers.
The personal finance portal advises those who are worried about credit card debt to stop using their plastic to make purchases, clear the existing balance and then cancel the account with their card provider.
"Unless you keep a tight rein on your borrowing habits, it is quite easy to get caught up in borrowing over and over again until you reach the point that it is no longer feasible to consolidate your debts," the website explains.
It also warns against the use of store cards, which can also contribute to serious debt problems.
"Having a charge card for the store makes it very convenient and easy to purchase items on the spur of the moment that you don't really need," the Thrifty Scot says.
The Federation of Small Businesses recently urged the government to impose a cap on credit card interest rates.
News article brought to you by Debt1 - UK debt management specialists.
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