Cost of living crisis?

Budgets are adjusted to match the current circumstances

Jumping to credit card debt is a huge stretch

Aveline

Obviously I've been very concerned about this and the news is full of strikes and wage demands from various groups.
However, in town last week on a rare evening out, I was astounded to see all the bars, restaurants and clubs packed out. Our taxi driver said it's been like this for ages. On top of this I've just read of a huge influx of holiday bookings for this year with an average price of £3000+.
What's going on? Are things not as bad as the media makes out?

Aveline, What's going on? Are things not as bad as the media makes out?

Everyone has different income, expenses, needs and wants. COL crisis won't have the same impact on all people.

Didn't read other answers, but I suspect many agree, it's logic.

Hithere

Budgets are adjusted to match the current circumstances

Jumping to credit card debt is a huge stretch

If you read the attached report above *Hithere it includes different types of debt, including money lenders, it’s not about credit card debt, but the total debt burden.

I read the link quickly, I admit, but I don’t see how it can differentiate between debt which will be paid off when the statement arrives and debt which is being paid off so slowly that it’s probably increasing. I pay for pretty much everything on my credit card - groceries, fuel, energy, everything that isn’t on a direct debit - but the resultant debt lasts for one month at most, then it’s paid off.

Don't forget that interest rates have gone up for those with a lot of savings so their higher costs are being offset.

The rich get richer and it's always been the case.

My state pension is going up by 10%. But 10% of what I get isn't a lot, it may cover the increase in my council tax and some extra for food and essentials . So it sounds a lot but really isn't. I live on way less than £10k but all the usual bills of keeping a house going and I'm happy enough. I find average wages these days staggering.

Where I live the nail bars and barbers are doing a roaring trade. A local garden centre is always booked up solid at lunchtimes, I've given up trying to go there. Everything around here seems to be as bustling as ever.

GSM - same here

Interest rates on savings have gone up for those with a lot of savings? I wish!

Germanshepherdsmum

I read the link quickly, I admit, but I don’t see how it can differentiate between debt which will be paid off when the statement arrives and debt which is being paid off so slowly that it’s probably increasing. I pay for pretty much everything on my credit card - groceries, fuel, energy, everything that isn’t on a direct debit - but the resultant debt lasts for one month at most, then it’s paid off.

I do exactly that too GSM, I’m sure many millions do the same because it’s beneficial to do so. From what I read, if you pay off in full when you get your statement, (mine is a direct debit to pay it off in full on the due date each month, which I think a lot of people do), because you haven’t accrued any interest to pay back it isn’t counted as part of the total credit card debt figures.
Regardless of that though, the key fact is that the total credit card debt is increasing, so comparing like with like, even if it did include those who pay off in full each month that would be in the original calculations too, and the figure is worsening.

Possibly part of the increase is due to people no longer paying in cash?

Maybe. I think the total debt burden report is more revealing because although it’s a bit out of date now that does show the debt increases for different forms of debt rather than just credit cards,

Yes savings interest rates have risen as the Bank of England base rate rises.
Someone close to me has a large sum from an inheritance and invests it. She receives £300+ more in monthly interest than before. It helps her a lot.

Georgesgran

Gsm I agree - I’m still hardly using cash at all. My credit card statement is long - often 3 pages, but made up of so many small purchases where I’d previously have used cash. Always paid off in full, although I occasionally go for a balance transfer for a very expensive purchase (holiday). Years of financial education has finally produced results!

As do I. The bulk of my monthly expenses; fuel, food, eating out, whatever, goes on my John Lewis credit card which is then paid in full at the end of the month, and generates JL vouchers too. So, the statistics about credit card spending do not tell us anything unless it includes figures of how many pay it in full. Also, see my previous post regarding necessity of using credit card in the past.