Third of Brits blame banks for their debt problems
They also say banks and lenders make it too easy to get into debt in the first place as they don’t check borrowers can afford the repayments and they keep increasing credit allowances.
More than 2,000 people aged 21 and over were quizzed about their finances and how they managed repayments and 41% said they’d been in debt on and off since they were old enough to own debt.
The research, conducted by VoucherCodesPro, also revealed that 22% didn’t remember a time when they weren’t in debt.
When asked who they blamed for their debt, 48% stated they blamed themselves, 34% said they blamed the banks and lenders and the remaining 18% blamed their family and friends.
For those who blamed their bank, 43% said it was because the bank allowed them to make small minimum payments while for others (39%), the interest rates increased annually so it increased what they owed.
According to the poll, when asked why they’d taken out the debt in the first place, 34% said they were ‘strapped for cash’, 30% said it’s because it was offered to them and 29% said it was because they needed to buy items they couldn’t otherwise afford.
The results showed that the average interest amount on credit cards, loans and overdrafts was 18.4% APR.
George Charles, of VoucherCodesPro, said: “Getting into debt is the easy bit; getting out of debt is the hard bit. Once you’ve got debt it’s tempting to just pay the minimum repayments, accept credit limit increases or even to use all of the credit that you’ve been offered and seek additional credit elsewhere; but borrowing money isn’t the answer. You might have credit on a card or money sat in the bank, but it’s technically not your money and it’s going to cost you more in the long run.”
Charles said it’s best to set aside a small amount of money each month, whether it’s put into a savings account or even a piggybank, just to ensure that you’ve got money in emergencies.
“If you’re sent letters offering you credit, throw them away. And get out of debt as soon as you can, paying more than just the minimum each month,” he said.