With the latest Credit Action figures revealing that UK families lowered their debts in December last year, the Credit Action CEO has warned that such trends could be a genuine ‘cause for concern.’
Michelle Highman, Credit Action CEO, explained that whilst debt levels may have fallen, the levels are far from low and could be hiding serious concerns.
“Put into context, these are striking figures with the decrease in average household debt not necessarily a cause for celebration,” said Highman.
In her opinion, these figures represent an increased level of caution and concern in the average household, which impacted confidence in putting Christmas on credit last year.
“Whilst it is heartening that people did not overspend, the underlying reasons for not doing so may prove to be a real cause for concern in the coming year,” she added.
2012’s financial challenges
The latest debt figures showed that Brits have lowered their average household debts to an average of £7,948 per month. Previous figures had but this amount at £7,972, showing how consumers were making concentrated efforts to cut down. The coming year is likely to see further price increases, which means households could be facing further difficulties as they try to restrain their spending.
With increased expenditures and lower incomes, many consumers are turning to alternative methods of funding to help them cope with the cost of even basic amenities.
These alternative funds are provided by anything from loans to credit cards. More than 26 million purchases are made using cards each day, amounting to more than £1.2 billion and representing the dire situation faced by Brits.
Loan alternatives are also available and responsible lenders offer unsecured personal loans which are available to give you access to the funds you may require. Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.