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The Number of People Using Debt to Pay Debt is on The Increase

A recent survey by compareit4me.com, the UAE-based finance comparison site, has found that the number of people making debt repayments using a credit card is on the increase.

July 10, 2013 2:43 by



FOR IMMEDIATE RELEASE:

The Number of People Using Debt to Pay Debt is on The Increase

Dubai, U.A.E. – July 8, 2013 – A recent survey by compareit4me.com, the UAE-based finance comparison site, has found that the number of people making debt repayments using a credit card is on the increase.

20% of those surveyed admitted to making a loan repayment using a credit card, whilst another 45% said their monthly debt repayments were beyond their means.

Credit is now readily available to those living in the UAE and with weekly calls from banks, many said they couldn’t resist taking out new cards or loans when offered. A number of survey respondents had fallen into the trap of transferring a balance from one card to another in a bid to save money, only then to fully utilise both credit cards leaving them with double the debt.

37% of those surveyed said they had three or more credit cards, and over 50% of those with three cards or more said they had used over 90% of their available credit.

Lastly, 42% of those who answered the survey told compareit4me.com that they only made the minimum payment on their credit card each month. Only making the minimum payment is a huge issue for those in financial difficulty. Making the minimum payment means you are only paying the interest which means the debt never decreases.

Tom Davies, Operations Manager at compareit4me.com, said, “The results found in the survey were a big concern. We found worrying trends with large portions of the respondents; trends which meant people were accumulating debt quicker than they could afford.” Tom continued to say, “Credit can be and often is a positive thing but only when used responsibly. Anyone considering credit facilities should think carefully about the monthly repayments and the total value of the debt.”

“Perhaps most importantly of all, anyone taking out any kind of finance should compare all the available products from a range of banks to make sure they are getting the best deal and the best fit for their personal needs.”

compareit4me.com is a finance comparison website allowing users to find, compare and apply for personal loans, credit cards, home and car finance in the UAE.

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For more information, please contact [email protected]



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