Brits tackling credit card debt whilst they can

Brits seem to working on the premise that they are on borrowed time in terms of their ability to pay off their debts and with this in mind many are seizing the opportunity to put any spare cash towards repayments of their credit card debts. Recent figures have shown that consumers have been spending less on their credit cards in addition to paying off more money on their credit cards debt.

The figures come from the British Bankers Association and have shown that shoppers spent £6.8 billion on their credit cards in September. This was a drop from the £6.9 billion that was spent in August on credit cards. Consumers have also paid off more than they have spent on their credit cards in that period, paying off £7.2 billion of their debt, which is significantly more than they spent on their cards.

There are many reasons why consumers are now thought to be putting more effort into paying off their credit card debt. An uncertain economic climate, financial worries, concerns over the base rate and mortgage repayments rising, and worries over job losses are all thought to be contributing towards the attitude of consumers when it comes to repaying their credit card debts. Many may be trying to pay off as much as they can before the base rate increases, so that they are better able to handle any increases in their mortgage repayments stemming from the base rate increase.

One BBA official said: “Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty.”

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