Credit card bills add to “financial meltdown”

By MoneyhighStreet Staff. Published on December 10, 2008 This post currently has no comments.

Credit cards
A quarter of the UK''s adult population are facing "financial meltdown" as a result of the current economic climate, according to new research.

Figures from Axa show that 11.6 million Britons are experiencing difficulties with credit card repayments and mortgage arrears.

Some 3.7 million – or 33 per cent of those with money worries – cannot afford credit card bills, while 6.2 million (54 per cent) say the credit crunch has left them without any savings.

A further 1.02 million have fallen behind with mortgage payments and 1.7 million have seen investments drop in value of the past few months.

Steve Folkard from Axa said that the credit crunch is "hitting people hard".

"For many people that means running out of savings or struggling to meet repayments but for some it''s more serious still and can spell bankruptcy, an IVA or repossession," he explained.

"That''s why taking control of your finances is so important. People who bury their heads in the sand will find it difficult to avoid financial difficulties during a recession."