St Albans in top 5 worst areas for credit card debt

According to a recent report St Albans has found itself in the top five worst areas when it comes to credit cards debt. The level of borrowing that is being exercised in St Albans has put it amongst one of the worst areas nationwide when it comes to this sort of debt. Research was carried out by the credit reference agency Experian, and the results showed that residents in the area have an average credit card debt of £1871.

Concerns were expressed by St Albans MP Anne Main, who is worried about the debt problem both nationwide and in this particular district. She said: “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. 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 loans are used to pay for the essentials. ”

She added: “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.”

One official from the Citizen’s Advice Bureau in the area said that around a quarter of the people they have advised in the early part of this year had been struggling with credit, store, and charge card debt.

She said: “Our advisors are all busy, but they are busier than ever at the moment - people are really feeling the pinch. People are using credit cards 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.”