Brits Under Debt Trouble For 31 Years

As the affects of the credit crisis continuously putting people under pressure, Britons are increasingly planning at their own financial position to see what strategy they can apply to simplify the pressure.

However, personal debts has increased to a record high and spending on credit cards are continuously increasing, as a result, the troubles are not likely to cover up soon.

In fact, over three million people across the UK are under so much stress with their credit card debt that it could take them up to 31 years to repay the average balance.

According to a new study by price comparison site uSwitch, gross spending on credit cards gained average of 179 million pounds quarter to quarter over the last year. It means that 11 per cent of consumers are making the minimum repayment each month is creating more problem than ever before. Combined with a downfall in the average minimum repayment being paid off each month, some consumers are in for a long critical time.

The company revealed that if consumers create a minimum repayment of two per cent of their balance, an average of 27 pounds and 68 pence each month, it will take until August 2039 to pay off a balance of 1,384 pounds, which accumulate a huge interest bill of 2,828 pounds. However, by repaying just three per cent, this time period will halve to 14 years and nine months.

Simeon Linstead, head of personal finance at uSwitch, said: "Over the past year we have seen a rise in credit card spending, making minimum repayment levels more of a problem now than ever before. With the rising cost of living and people being forced to squeeze their spending, consumers will be more tempted to just make the minimum repayment on their credit cards and spend the cash on more urgent bills."

For those looking for an effective way to cope with their critical financial situation, taking out a debt consolidation loan can be an appropriate option. This loan has the ability to merge all your debts into a single loan.

A recent study by the Alliance Trust Research Centre found that British consumers are struggling more with their money than has ever been recorded. Only the debt consolidation loan helps them to get rid of such critical situation of debts as soon as possible. This loans allows you to reduce spending from credit cards, as well as to keep a hold on other spending commitments.