PPI Claim News
Credit card charges add to debt burden
Interest on credit card charges and other forms of personal debt totalled £165 million a day in April, according to new figures from a debt charity.
Credit Action reports the average debt burden on households increased during the month as many struggle to meet payments on loan charges.
Although unsecured borrowing levels fell in April, a rise in mortgage debt offset the decline and saw household debt increase to an average of £54,015 from £53,991 in March.
Credit Action chief executive Michelle Highman notes that while the figures suggest the debt burden is not increasing, it may also suggest that some are struggling to pay down their debts, leading to a static picture overall.
Meanwhile, average debt including mortgages showed an increase, which "no doubt reflected the positive impact" of schemes such as Funding for Lending, she stressed.
"As with all forms of borrowing though, when taking out a mortgage it's crucial to make sure that you can afford your repayments on a sustainable basis," added Ms Highman.
Samantha is a former banking assistant and has over ten years experience in retail banking.
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