Applying for a Credit Card The Facts

It has recently been reported in Britain that credit card spending is reaching an all time high with current level of personal debt being around £2 billion and increasing daily along with more and more people declaring bankruptcy or insolvency.

Despite the rising levels of debt, it is becoming a lot easier for people of all ages to apply for a credit card and be accepted which can lead to dwindling finances and going from the black into the red.

Why is this occurring?

When it comes to applying for a credit card, it is easy to obtain (dependant on one’s credit rating) and with more and more people using this to supplement any household income, it is technically resulting in spending money that he / she doesn’t have.

With inflation continuously rising, the average wage rates across the country simply cannot keep up with the strain on society and it is for that reason which individuals whatever their age chooses to apply for a credit card.

It is not so much having a credit card that is to blame, it is one’s inability to curb spending and this leads to rising interest rates and monthly repayments which can become impossible to keep on top of.

Applying for a Credit Card

Of course no one wants to end up in the situation that is affecting many millions of Britons today and there are ways of avoiding such issues even if you do decide to take on the responsibility of an easy credit facility.

With anything that involves financial scenarios, being responsible is always the key. It can be done where one has a credit card and stays in the black but this is purely down to one’s motivation and dedication to ensure that debt is not going to be the ending result.

• Do I really need a credit card? This would depend completely on individual circumstances and whilst applying for a credit card doesn’t always lead to problems, if you feel you need one then I would strongly recommend avoiding such a major step because this is where repayment issues do occur and what leads to rising personal debt.

Always bear in mind before applying for a credit card that some relatives would have coped completely fine without a credit card as technically, they have not been long in existence and in a richer society today, we should be able to cope a lot better than those in the 50’s (for example) but instead, the level of debt which continues to rise is actually proving to be worse than those who lived over 50 years ago.

Before submitting any kind of credit card application, ask yourself if you could cope and be comfortable without a piece of “plastic” as this is half the battle won. No one wants to end in debt and applying for a credit card with the wrong reasons in mind will only lead to problems which could have been avoided in the first place.