Plan ahead to avoid credit card debt
By UK CreditCards.com
Putting a "strict" budget in place is important for customers currently prioritising the repayment of credit card debts.
New analysis from the Consumer Credit Counselling Service (CCCS), released July 27, advised customers to be honest with themselves in order to cut back on overspending on unsecured credit.
The comments come in the wake of new figures from the International Monetary Fund, which showed that as much as 7% of European credit card balances could be defaulted on.
This trend is also likely to be particularly acute in the UK, where average rates of personal debt are far higher than on the continent.
Tom Howard, a spokesman for the CCCS, advised: "Your first step should be to make a strict and truthful budget that will set out your finances and help you see where you are overspending [and] can cut back."
Recent data from Credit Action, a leading debt charity, suggested that the typical UK household owed around £10,000 on credit cards, personal loans and other advances. In all, around £233bn still has to be repaid.
Published: 28 July 2009
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