Consumers are feeling the effects of the credit crunch and increasingly turning to credit cards to muddle their way through the resulting financial strain. The figures are disheartening when decreasing salaries are taken into account as consumers will at some point face the reality of thousands in debt to be repaid with less household income. Unfortunately, the economy is probably not nearing the end of its downswing anytime soon.
The UK as a nation has a total credit limit of £254 billion with each card holder averaging a credit limit of to £8,234. This is an increase from £6,000 last year according to moneysupermarket.com. A major factor causing the increased reliance on credit cards is the prior reliance on equity thanks to rising house prices. Consumers must now turn to credit cards.
It is reported that consumers could spend a quarter of a trillion pounds, acting as a warning for credit companies to consider potential debt of the consumer seeking a credit card. The problem becomes serious when consumers are awarded several credit cards from different providers, often totaling thousands in available credit to spend which is one underlying reason for the reported £666 million in outstanding UK credit card debt. This number is an increase of three percent from last year.
The concern among experts is that consumers will increase their credit card debt to make their mortgage payments, adding to their already financially strained budgets and decreasing their available credit for real emergencies. Rather than living on credit, consumers could better protect their financial future by adding to their household income as opposed to living on credit. Using the latter approach will one day result in them facing thousands of unbearable debt. The best way to avoid this situation is to simply avoid incurring that debt in the first place.
Thanks to the internet, part-time job seekers can supplement their income by profiting from online opportunities as many have already done. For instance, gaming is one of the largest growing industries online offering monthly returns of as much as twelve percent. New software, such as ArbAlarm, allows traders to scan prices on a global front in just a few seconds thereby uncovering risk-free trading opportunities and easy, guaranteed profit. More about this unique investment method is discussed by former trader Rajeev Shah in his book Sports-Arbitrage – How to Place Riskless Bets and Create Tax-Free Investments. He explains that arbitrage occurs when bookmakers’ prices on identical events overlap, allowing the trader to bet on all of the outcomes in that one event.
Ordinary people new to trading can now take advantage of this risk-free opportunity and enjoy the financial benefits of the internet. Even better, the UK Government recently announced that the profits on arbitrage trading will remain free of both income and capital gains tax. Hopefully, opportunities for extra money such as arbitrage trading will provide otherwise financially strained consumers some relief and financial security.
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