A little bit of plastic goes a long way – particularly if it’s in the form of a credit card. Too many of us, too many times have used our flexible friend to make that “must have” purchase with a promise to pay it back later, on a more convenient day, at a more convenient time.
But time is running out it seems, for those with bills too big and purses too small to make even the minimal re-payment. Statistics are coming in fast and quick, confirming the steady rise in credit card debt. As people return from their “must have” summer holidays, I feel the question has to be asked, is it really worth it? Really? Is it?
A colleague of mine recently told me she doesn’t own any credit cards – not because she can’t, but because in such cautious financial conditions, she believes it’s safer to go without. So where do we go from here? There seems to be a huge divide in this country from those who use credit cards and those who don’t? Those who don’t – like many ClearCash clients – only use the money they have to buy the things they need – if they can’t afford it, they go without.
But despite this – I question why the rest of the nation continues to spend their way into debt? No sooner will they have come back from their summer holiday, which they couldn’t afford in the first place, to then start spending the money they don’t have on Christmas presents.
UK banks and building societies have confirmed, that in the last 12 months, they’ve written off £9.6 billion of loans to individuals. In quarter one alone, £2.13 billion was written off of which £1.25 billion was credit card debt.
Surely, the whole nation needs to sit up and take notice – or will the rest of the credit card fan club only find their senses when it’s too late – when the red bills arrive on the doorstep and they’re officially, undeniably, in debt.
If you’ve taken a summer holiday this year – why not tell us here on our poll how you paid for it
