Citizens Advice has responded to a Financial Conduct Authority (FCA) report outlining the extent of credit card debt in Britain.
More than 1.6million people can only afford to make the minimum payments on their credit cards, leaving them racking up interest payments and struggling to get out of debt.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Credit card debts can quickly spiral out of control.
“Borrowers who only pay off the minimum amount or fall behind can soon find themselves trapped in a cycles of debts. The FCA is right to say consumers need more control over credit limits and to encourage consumers to pay off debt quicker when they can afford to.
“Mainstream debt problems, from credit cards to formal loans, only tell part of the story. We are seeing increasing numbers of people come to us struggling with priority debts, like council tax and rent arrears.
“It’s absolutely essential the Government ensures people can access independent advice and support on how to manage their finances and prevent problems arising in the first place.”
View FCA’s interim report:
http://www.fca.org.uk/static/documents/market-studies/ms14-6-2-ccms-interim-report.pdf
Notes to editors