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Credit card debt second most common debt problem brought to Citizens Advice

Citizens Advice helps with 14,000 credit card debt problems a month making it the second most common debt issue people seek advice on, the charity revealed yesterday.

The new figure is released as the Financial Conduct Authority announces the terms of reference for its study into the credit card market.  The national charity is calling on the FCA to make sure the market is working for consumers and that lenders behave responsibly when collecting debts.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Credit cards can leave people dependent on debt.  Borrowers who only pay off the minimum amount can find themselves in a never-ending cycle of borrowing which means their debt only gets bigger.  Evidence from Citizens Advice has found some people go onto face harsh debt collection practices, like the threat of bankruptcy, from their card providers.

“Paying for items using a credit card can help people manage unexpected expenses and provides extra protection if something goes wrong.  But sometimes people find they can’t keep up with repayments.  Citizens Advice helps with 14,000 credit card problems a month, making it is the second most common debt issue we deal with.  For people who seek help from us about serious debt problems, the average credit card debt is £6,000.  

“With millions of pounds borrowed on credit cards each year this review by the FCA is important to make sure the market works for consumers and lenders are behaving responsibly when it comes to debt collection. The regulator needs to look at whether the checks for credit card applications are rigorous and don’t allow people to borrow money they can’t afford to repay.”  

Citizens Advice

Notes to editors:

  1. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office on 03000 231 080, or via email at press.office@citizensadvice.org.uk, to find out more.
  2. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  3. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  4. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  5. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  6. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends
  7. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.
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