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."
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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.
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