Mon, 19 Jan 2026

Mon, 19 Jan 2026 'Credit-score company encouraged me to borrow again when I was nearly debt-free'

A woman who had nearly paid off a £10,000 debt was sent emails suggesting she could apply for new credit cards.
1. Credit limit increases: Many people, including those struggling with debt, are being offered increased credit limits by their banks. This can be problematic for those trying to get out of debt. 2. Minimum payments: The way credit card repayments are structured, particularly the minimum payment amount, can lead to people paying more in interest over time and extending the length of their debt. 3. Anchoring: Credit card companies use anchoring to encourage consumers to pay only the minimum repayment amount, which can be less than the monthly interest rate. 4. Debt growth: If the minimum payment percentage is lower than the monthly interest rate, the debt will grow even if no more spending occurs on the credit card. 5. Lack of regulation: Critics argue that lenders should intervene earlier when customers are in distress and stop extending their credit limits. 6. Industry profits: The credit card industry makes significant profits from interest charges, with some people paying more in interest than they borrowed. The article also features several personal stories of people struggling with debt: 1. Tom: A screenwriter who accumulated £21,000 of debt across three cards and struggled to pay off the capital. 2. Amanda: Trying to keep on top of her finances after accumulating significant debt. 3. Michael: Selling his home to try to pay off his debts so he can retire debt-free. The article concludes by highlighting the need for greater regulation and support for those struggling with debt.
  >>