'Easy credit' has led to debt problems - Credit cards - News - Moneyfacts

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'Easy credit' has led to debt problems

'Easy credit' has led to debt problems

Category: Credit cards

Updated: 12/01/2015
First Published: 27/02/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers are beginning to struggle as a result of taking on too much credit card and other debt in the past, it has been observed.

A spokesperson for Citizens Advice noted that the availability of credit in the past prompted people to take on more than they could afford in unsecured loans.

She explained that credit was previously "easy to come by" and that lenders often did not take account of what a consumer could repay.

As a result, drops in income are now "making the debt situation a lot worse", the spokesperson said, adding: "What is concerning us is that we know that a lot of our clients have a substantial amount of consumer credit debt."

The results of a recent study by Citizens Advice revealed that credit card and other debt is a mounting problem for many, with the average client owing a total nearing 18 times their monthly household income.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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