Debt and Credit Cards
The credit crunch was just last year and the UK residents are still feeling the effects of the crunch. The crunch has stopped the credit binge many have been on for years now, but it is time to pay the consequences. For those who have not stopped spending or changed their spending habits to reflect the increases going on around them they are in debt. Millions of Britons used their credit cards in the past to purchase shoes, clothes, gadgets, and other not so necessary items. The credit cards were just there for the taking and it seems sense didn’t prevail.
The Consumer Credit Counselling Services are worried with the current debt in the cities of the UK. The debt has risen and about 45 percent of the debt cases they see at the counselling service are all due to misuse of credit cards. 23 percent of the enquiries to the Citizens Advice Bureau are also credit card related. These percentages have increased since 2006 and 2007, even though we are only half a year in to 2008. Many of the debts are credit and store credit cards. Store credit cards are a little different in that they are used for that specific store savings rather than as a blanket card.
The scary news is that hundreds of thousands of UK consumers are still going into debt because they have a compulsive need to shop. Now that they have been in this shop and buy what they want mood they can’t seem to pull out of it.
The UK counselling services are worried that many of these individuals are going to need therapy in order to get out of the shopaholic frame of mind. The hard facts are this:
Many of the UK consumers are trying to stop the shopping, however this is causing the binge shopping to occur. It seems that they just can’t help themselves in the shopping department, and it is not just women. Most of the shopping in the research has been done by men. The counselling services think that therapy may be the key rather than counselling advice on where families can save money. They believe that if a person can’t get the addiction under control then they will not be able to save in the areas needed or seen by the advice counsellors. This is true to a point. You might be able to recognise the behaviours in yourself, but can you stop? Can you walk by that new shirt and say ‘no’? Trying to change overnight is not possible and there are always setbacks, but if you can get that self discipline without therapy then you are on a roll. Otherwise you might need to just cut up those cards and deal. The store cards are the worst.
Store cards have the higher interest and they always offer you discounts for shopping with your card. The best medicine is avoiding the places you are likely to over shop. Stick with the groceries and stay out of clothing.
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