Two in five credit-card holders ‘struggling to clear their balance in full’
Rising living costs and the need to prioritise paying other bills were among the reasons given for people struggling to repay card debt.
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Your support makes all the difference.Two-fifths (42%) of credit-card holders have struggled to repay their balances in full in the previous six months, a survey has found.
More than a third (35%) of these people said this was because of the rising cost of everyday expenses, such as food and fuel, while 33% cited the need to prioritise other household bills such as energy and rent, Compare the Market found.
Others said they had borrowed more than they could afford to pay off (21%) or that the interest rate on their card had increased (20%).
Of those who own a credit card, six in 10 (59%) said they are confident in their ability to be accepted for a future credit card application.
One in six (16%), however, said they have had their application for a new credit card declined in the past six months.
You may also need to make difficult spending decisions
Across the survey, nine in 10 (90%) people had seen their regular bills increase over the previous six months.
Food prices ranked as the highest financial concern for households over the year ahead, cited by two-fifths (41%) of people.
Winter energy bills (38%) and inflation (23%) were also prominent concerns, with others highlighting rising rents (17%), petrol prices (18%), insurance (15%) and mortgage costs (10%).
Nearly two-fifths (37%) of people were trying to cut their spending to keep costs down, 34% were trying to use less energy and 22% were reducing discretionary spending including on hobbies and holidays.
Some people questioned have even been helping their partners (19%), children (12%), parents (12%), and friends (10%) to organise their finances and save money in the past month, according to the Censuswide survey of more than 2,000 people in July and August.
Guy Anker, a money expert at Compare the Market, suggested that households weigh up prices and features offered by different providers.
He added: “You may also need to make difficult spending decisions if that’s not enough to keep your finances on track, so keep a close eye on your regular outgoings, do a budget and prioritise what is most important to you in case you need to cut back on what you deem to be less of a priority.”