DebtOptions

Spending Yourself Into Debt

Of course, many of us opt to make purchases using lines of credit for things which we otherwise couldn’t afford to buy ‘there and then’. Good examples are for ‘luxury’ items like a new TV, or purchases made around the Christmas season. On the other hand, some consumers are finding themselves using credit to pay for everyday bills like food, petrol, and even mortgages or rent - and this can be a source of problems. If this sounds like you, you are certainly not alone. It has been reported that 5 million UK consumers are using credit cards to pay ‘normal’ household bills - and a further 2 and a half million are using the cards to withdraw cash. Interestingly enough, there does seem to be a trend of credit card companies publicising the ways in which cards can now be used to pay for everyday bills.

Consumer debt services have seen this kind of spending pattern cause problems for some because it is essentially ‘survival debt’. Instead of using the cards to fund more fun, luxury items, consumers become increasingly reliant on them simply for household bills, food shopping, and petrol and so on. If the cards aren’t paid in full the next month, the compound interest can lead to a spiral of problems. It can also cost a substantial amount more to pay using a credit card than by direct debit or cash. Additionally, habitually relying on cards to pay for everyday necessities may be a sign that you could be in need of some consumer debt help to break the cycle.

Consumer debt services exist to provide impartial information on all aspects of debt management. It’s worth remembering that consumer debt help is not only for people who are facing bankruptcy. Many people have ‘lines of credit’ still open but find it a struggle to manage all the repayments and still pay for utilities, mortgages or rent, travel to work and so on.

For some, it could simply take too much of their income to service existing credit commitments. This can lead to the shortfall in the household budget for those other everyday bills being ‘bridged’ with yet more credit, such as cards. Problematic interest and the higher costs involved lead to a debt ‘cycle’ which can seem impossible to break. When the weekly or monthly income arrives, it is simply juggled around a variety of credit repayment bills without an adequate surplus for regular budgeting needs. For others, they may find that although they have not entered this ‘cycle’ yet, their monthly debt repayments are taking up too much of their disposable income to allow them to manage comfortably.

It’s important to recognise that expert consumer debt services are vital at this stage to address the debts before they begin to escalate beyond your control. Fortunately, there are a number of legally viable debt options available to help end this kind of cycle for good. To find the right solution for your problems, talk to the Debt Options team for free, confidential and non-judgemental consumer debt help - comprehensive advice and support for anyone struggling with debt for any reason.