UK credit card debt `on the rise`

The Government has highlighted the growing problem of credit card debt in the UK, according to the Press Association.

Recent Bank of England figures showed that borrowers owed a combined £61.5bn to credit card companies in January.

And Lord Marlesford, a Tory peer, said at question time: "That is an increase of £8bn on last year. The current interest rates being charged on overdue balances is 18%.

"That means that credit card holders are being expected to find over £900m in interest every month."

He added that there would be a "very large reservoir of very toxic debt" if the companies had not already adjusted their balance sheets to show that a lot of the debt wouldn`t be repaid at all.

A spokesperson for debt management company Gregory Pennington said: "Credit card debt is a growing problem for many people, and it`s vital that anyone struggling to repay their debts seeks independent debt advice."

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