Debt Problems May Result From Rising Credit Card Spending

Published: 11 October 2010 By MoneyHighStreet Staff Leave a Comment

Credit card spending rose in August fuelling fears that consumers may be overspending and risking credit card debt problems.

debt problemsCredit card spending rose in August fuelling fears that consumers may be overspending and risking credit card debt problems.

Nearly ten percent more money was spent on credit cards in August compared to the same month last year according to the Barclaycard Spending Index.

This is the fourth month in a row in which credit card spending has increased, however this raises fears that consumers may be over confident about the strength of the economy and may slide into debt in the near future if they fail to meet the monthly credit card payments.

This is increasingly likely with forthcoming public sector job cuts due to be announced on October 20th which could impact upon a large percentage of the working population in the UK – one in five work in the public sector.

With Christmas also around the corner, debt advisors such as PayPlan are advising consumers to temper their desire to spend with their credit cards with caution should their financial circumstances change for the worst.

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