Budget could increase credit confusion for Britons

Tuesday, June 22nd 2010

Britons currently dealing with a significant credit card debt may consider today's Budget announced to be bad news.

Chancellor George Osborne has announced VAT is to rise from 17.5 per cent to 20 per cent from January 2011, meaning many household bills and essential purchases will be more expensive.

The cost of living could become greater to many families already on the brink of financial disaster.

Other vital outlays, such as money for energy and mortgage payments, may also become harder to pay.

Some people could be best advised to formulate a repayment plan to lead them out of debt, with continued borrowing only likely to lead to long-term financial problems.

This Credit Action report for June goes some way to illustrating the debt problem in the UK, revealing the average British household owes more than £57,000.

One consequence of this is that a home is repossessed in the country every 13.4 minutes.