Debt levels 'are an increasing burden'
Debt concerns are becoming more and more of an issue for many UK adults, according to new research from the Consumer Credit Counselling Service (CCCS).
Concern was expressed as this pattern is emerging despite low rates of interest and reduced levels of debt.
As a result of the figures, increasing numbers of people are expected to have difficulties in improving their financial situation.
Individuals in this position could be running the risk of damaging their credit score, particularly if outgoings are in excess of income.
Drawing up a strict budget plan could help to ease the strain and taking out a credit card for bad credit might be a good idea.
When used properly, these can be an effective budgeting tool and can also help to improve credit history in the long term.
This is because using plastic for everyday spending and paying down the debt at the end of the month can demonstrate to a lender the person is a reliable borrower, in addition to being a strong candidate for other financial products.
The CCCS research found that the average household expenditure on debt was £200 per month at the end of last year.
It was noted this accounts for around 23.8 per cent of average available income and is a 0.1 per cent increase on the third quarter of 2011 - despite a £2 monthly drop in interest payments.
In the context of rising unemployment and the ongoing nationwide financial crisis, the demand for credit is forecast to remain high.
With this in mind, it is important people practice financial discipline and take any action that will help with their tightened purse strings.
Sticking to a credit limit is recommended, as skating too close to the limit could be interpreted as a sign of financial stress.
It also reduces the risk of being charged for exceeding the account limit and closing any unused cards is also advised, as lenders will look at how much credit is available to the individual, rather than how much is being used.
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