Taking out a credit card to help pay towards everyday essentials, and to ease the financial burden of larger purchases has for many become the norm. However, it is easy to forget how it can impact our finances in the future.
Unexpected events or expenses can make it hard to keep up with a repayment plan. Some people struggle to pay back what they owe and can start incurring debt. Outstanding credit card debt came to £63.9 billion in January 2023, this was an increase of 9.01% (£5.3 billion) to the year prior. Credit card debt averaged £2,277 per household and £1,202 per adult .
Incurring debt may not seem like an issue, and you may think you’ll pay it off in due course. However, the amount of debt you have can negatively impact your credit score.