Credit card debt increases by 10%

With the constant pressure from rising living costs and inflation, households have turned to borrowing to cope, but many aren’t able to pay off their credit cards, according to the latest UK Finance data.

 Sam Welch, Commercial Director for Banking at TransUnion said “The key takeaway lies in the rise of credit card usage, with transactions increasing by 3.8% year-on-year and a 3.7% rise in total credit card spending. This could suggest a shift towards credit-based purchases as consumers continue to navigate a period of high inflation, as we know from TransUnion’s recent Consumer Pulse research that 46% of UK adults still feel their household income isn’t keeping up with the rate of inflation.

“It’s crucial to emphasise responsible credit management in these circumstances. The data reveals that outstanding credit card balances have grown by 9.7% over the past year, with over half accruing interest.”

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Being in debt can be scary, but you’re not alone, and we can help.

Our free debt advice is available to people all over the UK, online or over the phone. We’ll go through your finances in detail and explain your options. You might be surprised at the range of help available. We can:

• check you’re getting all the benefits you’re entitled to
• help you with budgeting
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 There are various debt solutions available that reduce your monthly debt repayments and even write off some of your debt. We’ll let you know if any of them are suitable for you. All our advice is free. Some debt solutions are free, while others come with a fee. We’ll give you all the information you need to make an informed decision and, if we recommend a debt solution and you decide to go ahead, we’ll help get it set up.

You should also make sure you’re getting all the benefits you may be entitled to.