4 Million Snowed Under Credit Card Debts

According to a new research, almost 4 million people say they unable to tackle with their credit card bills, while 1 million are not able to manage with their mortgage repayments.

According to a survey conducted for Axa, the insurer a quarter of the population or over 1 1million people are struggling with monetary meltdown, with many of the effects of the credit crunch to blame.

Over 750,000 people say they have been forced to seek for an Individual Voluntary Arrangement (IVA) and around 500,000 have been threatened with the bailiffs or repossession, the survey discovered. Some 6.1 million people had no savings left at all and around 1.7 million reveal that their investments had all but collapsed thanks to the financial crisis.

However, of the 11.6 million people who indicate they were struggling financially, a significant number around 1.3 million people agreed that their finances were totally out of control.

Steve Folkard of Axa said: "The effects of the financial crisis are putting people under severe pressure. For several people that means running out of savings or struggling to cope with repayments, but for some it's more serious still and can spell bankruptcy, an IVA or repossession.

"That's why taking control of your finances is really vital. People who bury their heads in the sand will find it hard to avoid monetary troubles during a depression. The more you are aware of your difficulties and the more in tune to your monetary situation you are, the better your chances of coming out the other end in good shape."

Axa suggested that people contribute an hour every month to reviewing their finances.

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