Debt hangover affecting budgets
Article Category: Debt Management Help and Advice
Debt hangovers are giving some people a nasty headache in budgeting for this year’s finances.
That is the view of debt charity, Credit Action, which says that a combination of still trying to pay off debts from last year and increased living costs, plus higher inflation, is putting a financial strain on household budgets.
Chris Tapp, from the charity, was concerned that in the run up to Christmas a "little bit of a jump" was seen in the amounts people were borrowing, which might impact on how much more of their take-home pay is taken in paying for day-to-day expenses.
This could, he says, force some of them into using their credit cards just to get by month to month.
He added: "This is a worrying scenario to find yourself in and that point - when you start using your credit card as a necessity - you should go and get help."
Mr Tapp concluded by saying that a home loan should always be paid first, but "if you are using your credit card to pay your mortgage, it’s a worrying indicator because you can’t do that forever".
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