1:00pm Friday 29th August 2008
By Alexandra Barham
EXTENSIVE use of borrowed money has landed St Albans in the top five worst areas nationwide for credit card debt.
A study by credit reference agency Experian revealed that St Albans residents owe an average credit card debt of £1,871, making it one of the worst indebted areas nationwide.
The findings were uncovered just days after another survey by debt management agency ClearDebt, revealed people in the district owe an average of £32,650 placing it in the top ten regions across the UK with the highest arrears.
St Albans MP Anne Main has expressed her concerns over the national credit crisis and its deepening toll on the district.
“I think the Government must wake up to the situation, and recognise that many people are burdened with huge debts as we enter a period of economic uncertainty,” she said.
“It is not a coincidence that many of the areas with the most debt are those with highest house prices.
“As people struggle to pay mortgages and rents often credit cards and other borrowing are used to pay for the essentials.
“Whilst it is often assumed that St Albans is an affluent area, many are under a great deal of pressure with rising food and fuel prices, coupled with falling house prices and employment insecurity. We need to work together to ensure that these debts are not a ticking time-bomb, which will cause problems in the future.”
Karen Williams, manager of the St Albans Citizen Advice Bureau, said 25 per cent of people they advised in the early part of the year were submerged in credit, store and charge card arrears.
She added there had been a 30 per cent rise in queries over outstanding credit and store card bills in July compared to previous months.
“Our advisors are all busy, but they are busier than ever at the moment - people are really feeling the pinch,” she said.
“People using credit credit card to stave off paying out of what’s in their pocket right now.
“They tend to put into their mortgages and utilities their ready cash and the rest comes from a credit card.
“People don’t want to be part of the buy now, pay later culture, but in some cases their choices are limited.”
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