Priority forms of debt, such as council tax and mortgage or rent repayments, are probably the most common things which spring to mind when talking about owing money. However, few may mention the more everyday types of debt which numerous people live with almost constantly.
To many, these expenses are just part of everyday life and something which is unfortunately usually always there. To others, these debts are treated – and often misused – as a form of lending with no consequence.
The Money Charity suggested this was the case when referring to credit card debt.
During a study published by the organisation, the firm found that someone would take more than 26 years to pay off the average credit card debt in the UK – assuming that individual made only the minimum payments.
A spokesperson for the Money Charity commented on the findings, stating:
“It is essential that consumers appreciate that credit cards can be a helpful financial tool to be used wisely but mustn’t be treated as an inconsequential loan.
“This stark calculation shows exactly how problematic credit card debt can become if not taken on with a mindset of fully understanding the product, its total costs and affordability, looking towards how it can be managed sustainably by planning and budgeting accordingly.”
It’s perhaps for this reason that 23% of young men, and 25% of young women, are “constantly in debt”.
Although this research highlights just one type of debt, it does shed light on the varieties of different loans out there – some of which are often not taken as seriously as others.
It’s important to note that there are such things as good and bad debt – although many would not see a distinction. In the case of the former, this is debt which is often needed to help us live good-quality lives. For example, a mortgage is typically essential to get on the property ladder while a student loan is usually a prerequisite for university.
Debt only becomes bad when it becomes unmanageable. Therefore, if you’re struggling to repay your credit cards, and wondering how you can resolve this debt, this would fall into that category.
Don’t worry though because, if this sounds like you, you’re in the right place.
Through debt consolidation, we could help you get back in control of your finances – even if you have bad credit. Whether struggling with credit cards or a completely different debt, our team of advisors have heard it all before.
To get in touch with them, and find out if this solution is the right one for you, click on the button below: