PPI Claim News - 13/9/2011
Credit card charges 'can quickly escalate out of control'
The current financial climate means that credit card charges that seemed manageable at first can spiral out of control, an expert has said.
David Rodger, managing director of The Debt Advice Foundation, explained that many people who are having trouble financially are turning to credit to pay for everyday items such as food shopping and phone bills.
He said: "As prices go up and wages remain static and worse still, people find themselves unemployed through no fault of their own, the problem of repaying borrowings becomes increasingly difficult for families.
"Loans, credit and store cards that once seemed manageable can all too quickly escalate out of control in the current financial climate."
According to a report released by the Institute for Fiscal Studies, the UK has experienced one of the worst decades for the changes in living standards since WWII.
It found that over the most recent financial year, earnings, state benefits and tax credits all dropped in real terms in the UK.
John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

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