1 in 5 Scots maxing credit card
Research, carried out by scottishtrustdeed.co.uk, suggests that for many families, just about managing is already a distant aspiration. Some choose using credit to pay for everyday goods strategically – placing everything on credit before paying the balance off in full each month.
“There’s nothing inherently wrong with that approach providing you remain in control – although it does come with risks attached,” explained a scottishtrustdeed.co.uk spokesperson.
Most people put money on credit cards because they have no other choice. A Guardian report early this year quoted a survey which found 10% of people in the UK have ‘maxed out’ their credit cards.
“A credit card at or near its limit harms you in a variety of ways,” scottishtrustdeed.co.uk warned. “As the amount of interest you pay grows it becomes harder to pay down any of the actual debt, so you spend more without making a difference. Nearing or reaching your credit limit adversely affects your credit rating, and being at your limit makes you extremely vulnerable to the unexpected. When the car breaks down or the washing machine needs replacing, it can be the straw that breaks the camel’s back. Many of the 18% of Scots in our survey who regularly put living expenses on credit are walking a tightrope.”