While some people would say that the FCA doesn’t do enough to provide support and assistance for most people, there is a lot to be said for the work that they offer. The organisation has bene busy of late and they have prepared a report which looks at persistent debt. While we all know that debt is a major problem in the United Kingdom, it seems as though persistent debt is also a problem that we should be aware of.

The FCA has said that 1.4 million people across the country have only made the minimum repayments on their credit card for a period of three years. The FCA has also said that credit card companies are not doing enough to address this issue of debt. There has however been some response from lenders and they have said that they are looking to assist with warnings about the growing debt problem in the United Kingdom.

Credit cards are for short term debt

It needs to be remembered that credit cards are best used for a period of short term borrowing and that they aren’t really suitable for long term borrowing. The fact that so many people are just making the minimum payment to their accounts indicate that this is a long term problem and it is something that needs to be examined. When people become so used to just servicing their debt, and not actually doing anything to remove or get rid of their debt, it can become a major issue.

All it takes is for one unexpected item or issue to come along and people will then have a major debt problem on their hands. Whether credit card companies and lenders are looking to do as much as they can remains to be seen, after all, they are happy to bring money in, but if they fail to act, it may lead to a situation where lots of people across the UK aren’t able to pay anything with respect to their debt levels.

Persistent debt problems are concerning in the UK and people need to be aware of this problem. This is the sort of debt issue that can cause problems for many years to come, which is why it is something that could negatively impact on the country. By looking at this problem in a fair and objective manner, it is likely that steps can be taken to make changes in the way people deal with debt.