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The changing face of UK credit card debt

New figures released this autumn suggest that borrowers are seeking help with credit card payments for sums owed that are less than what they were previously. However, the number of people asking debt charities for help has fallen.

Figures for people approaching the Consumer Credit Counselling Service (CCS) have fallen in the last three years, the charity reports.

The organisation said that those who owe money are now starting to ask for help and advice once debts total £10,000. In 2009, most people wouldn’t do this until the sum they needed to pay back reached £13,000.

In other news, statistics indicate that credit card repayments are overtaking fresh borrowing.

According to the CCCS, more than 75,000 borrowers asked for its help with credit card debt during the first half of the year, a reduction from just over 80,000 during the first six months of last year, and more than 85,000 during the same period in the previous year.

A spokesperson for the organisation commented, “There has been a decline in levels of problem card debt. This could be because more people are paying off what they owe, or because there is less access to this kind of credit, or a combination of both.

The spokesperson went on to say: "Whatever the reason, it’s clearer that fewer people in the UK are now struggling with debt on credit cards, and more are seeking help and advice at an earlier stage."

If you are looking for a new credit card, think about which card is best for you. If you clear the balance on your card each month, go for one that gives you cashback or other rewards each time you use it. Benefits can range from shopping treats to air miles.

However, if you think you won’t pay off the full balance every month, perhaps you would be better off choosing a credit card with a low or zero introductory rate of interest.

If you have no credit history, or your history is poor, you may struggle to have your application for a card considered by a mainstream provider.

Over the last decade, aqua has helped many people in this situation, and, with more than 300,000 customers, they could help you, too.

aqua offers a range of credit cards with features tailored to different customers, and may be able to help you even if you’re new to the UK, have a poor credit rating or County Court Judgements, have a new address or are not on the electoral roll. Equally, aqua issues cards to those on low incomes and the self-employed.