Getting into debt has become an integral part of growing up it appears and we must all have witnessed at some time or other the heartbreak that this awful addiction has inflicted upon family members and people that we know.

The surprise is that it continues unabated, our ‘must have it now society’ is fuelled by easy borrowing and credit cards despite the banks making it more difficult to do so.

There is also no longer any stigma attached to the process of being made bankrupt and the consequences thereafter, it is almost seen as part and parcel of the deal, made all the easier in recent times by companies specialising in this area who can rid personal debts at the click of a finger while lining their own pockets.

The credit crunch has only served to highlight the problem that has been growing year on year for decades and it is quite scary seeing the details from this infographic and wondering what the future holds for a nation that is unable to pay its way out of debt.

Infographic by Money Debt & Credit

• We would like to thank the charity Credit Action for their help with core statistics

In keeping with the results over a third (34%) of 18 to 34 year olds currently have between £2,500 – £4,999 outstanding debts to repay including overdraft, credit cards, store cards and loans, but excluding mortgage payments.

Despite the economic climate and Government austerity measures, young Brits appear to be content with saddling themselves with debt in order to continue living a lifestyle that is often unsustainable.

This is a concern for CreditExpert from Experian who are encouraging Brits to take control of their personal finances, by following their tips and better planning their lives.

Peter Turner, Experian spokesperson said “When applying for credit it’s incredibly important to know your limits and what you can afford. Review your finances before you apply for new credit – work out your living expenses, go through your statements and check your credit report. This should give you a clear idea of the size of additional repayments you can afford.”

Nick Cann, CEO of the Institute of Financial Planning said “The effects of the rising cost of living, pay freezes and possible interest rate rises mean it’s more important than ever for people to get into good habits when it comes to planning their finances. That’s what Financial Planning Week is all about, and useful ideas and tips such as these from Experian, are a great way to help people take control of their money – and their lives.”

Financial Planning Week aims to raise the awareness of the benefits of Financial Planning, whether it is through some simple Financial Planning steps or working with a professional Financial Planner. The week is run by the Institute of Financial Planning, a not for profit professional body who work to help people across the UK realise the importance of Financial Planning in their lives.  Click here for more information on Financial Planning Week.

CreditExpert Top Tips

• Re-evaluate your spending and find ways to save. Price comparison websites, such as LowerMyBills.co.uk, are an easy way of cutting the cost of household essentials. At the same time, work out how much you are spending each month and set yourself a realistic budget
• Check your credit report for free with CreditExpert.co.uk. This is your borrowing and repayment history, so you’ll be able to see what your track record looks like, how you’re coping at the moment and whether there are open accounts you don’t really need.
• Build a good credit history.  Using a credit card and paying it off each month can help you to build a good credit history if yours is limited. This may increase your chances of getting low-interest deals.
• Close unused accounts. A sensible number of well-managed accounts will boost your credit rating, whilst large amounts of unused credit could reduce it.
• If you split-up with your partner, close all joint accounts as soon as you are able and notify the credit reference agencies. Otherwise your credit rating could suffer if they have financial problems

The infographic above is supplied by Wonga and demonstrates how wiespread the credit card disease is in the UK.

Over one in four (41%) have had debt outstanding on their credit card account for more than a year, the research by Moneysupermarket.com also revealed.

And almost one in ten (9%) said that they only pay off the minimum amount on their credit card debt each month – significantly lengthening the amount of time taken to repay the debt and increasing the amount of interest paid overall.

A debt expert at Gregory Pennington commented:

“Credit cards are not ideal for long-term borrowing, because of the relatively high interest rates they tend to carry. Many people with credit cards start out with the intention of repaying the debt before the interest can start to mount up, but it’s very easy to delay repayment if other things get in the way.

“Making the minimum repayments will usually cover the interest charged, but little else, meaning the debt can take a very long time to fully pay off. All the while that debt remains a burden, and if the borrower gets into financial difficulty the situation could become serious.

“However, all this can usually be avoided with proper planning. Although credit cards have flexible repayment options compared with things like personal loans, it’s wise to set yourself a timescale for repaying credit card debt.

“For those who do plan on borrowing money and repaying the debt over a longer period of time, a credit card with a 0% interest period may be an option, or for repayment periods of longer than a year a personal loan is likely to be more appropriate.”

Gregory Pennington is a founding member of DEMSA, the Debt Managers Standards Association, which was established in 2000 ‘to promote good practice in the debt management industry’. DEMSA’s code of conduct has received Office of Fair Trading approval, under its Consumer Codes Approval Scheme.

For more information, visit the Gregory Pennington website

Debt consolidation services, credit repair and direct mail all subsist off of the world’s obsession with credit cards. So, how does the view of consumer debt in the United Kingdom compare to that worldwide?

The UK is certainly among the most credit obsessed populations. The average household debt in the UK is about 8,600 pound sterling, excluding mortgage payments. One of the only countries with a higher average household debt is the United States, which boasts nearly 17,000 U.S. dollars per household, or about 11,000 pounds.

The two other major English-speaking countries, Canada and Australia, have high household debt. The highest is Australia, and Canada falls in just under the UK. Could it be that speaking English is part of the rationale? Far more likely, it’s the culture that has spread amongst these countries.

Major countries with outstandingly low consumer debt include China, Thailand, Indonesia and India. The proximity of these countries, both geographically and cultural, is likely the cause of these tendencies.

However, the contrast in the behavior of each country doesn’t stop there. It may be that the UK, US and Australia have very high consumer debt, but their saving habits are varied.

The US and UK have some of the lowest household savings of any country, while Australia finds itself comfortably in the mid-range of personal saving percentages. Indonesia, Thailand and India all have mid-range personal savings as well, but China has the highest saving percentages of the lot.

As a brief comparison summary, the UK has some of the highest household consumer debt and lowest savings percentages.

The research shows that over 50% of credit card holders for instance have not reviewed their monthly payments or balance in the last year.

That figure raises to 82% for people who have overdrafts and 86% for those with personal loans, showing that generally once provision is in place the majority of us do not bother taking steps to control our outgoings.

The study reveals that people are not taking proactive steps to ensure they stay on top of their money – 53% of consumers have never checked their credit rating, despite it being possible to do this for free, and I have to admit to being among them.

And one in five (21%) are unaware that missing a credit repayment can harm their credit score with 25% believing that ignoring a County Court Judgment will not affect their ability to access credit.

Dr Jonathan Henderson, consumer psychologist sees this “as a classic manifestation of the ‘ostrich syndrome’, where people choose an out of sight, out of mind approach to their finances where the less you know, the less there is to worry about.  Often people kid themselves they’re in good financial shape but in reality it’s a different story, which is only revealed when bigger problems occur further down the line.”

For years we have campaigned for plain speaking jargon from financial institutions and now Capital One have taken it upon themselves to offer practical financial education advice.

To help consumers improve their financial management Capital One has launched its ‘Credit Made Clearer’ campaign, which features a series of short animated films explaining in an easy to understand format the key area of finance that affect us all.

The campaign is designed to offer helpful money management while also dispelling the myths and confusion that are ingrained in the world of credit and finance through a series of easy to follow and understand animated films.

Commenting on the new campaign Brian Cole, Managing Director, Capital One said: “It is encouraging that consumers believe they are on top of their finances but perhaps they need more support in order to ensure they do not make avoidable mistakes.  We hope that our approach, which combines animation and humour, will help more people to think about their finances and take simple positive steps to improve them.”

For more information visit the Capital One ‘Credit made clearer’ campaign and watch the series of video clips with helpful and easy to understand financial tips and information.

As it had been a dream for most of my working life, when the opportunity arose I felt that I had to take it. Our children had lives of their own and while anxious about us leaving were supportive and keen that we should give it a go.

Having found tenants for our house in the UK but not having a time span in mind, we gave away or sold as much of our belongings as we could and travelled to Europe by car with me, my wife and our dog and a boot load of personal items.

We headed for the sun and ended up in Southern Spain, and finding a wonderful warm climate in November, we decided to stay.

We chose to live in a mainly agricultural area in the foothills of the mountains where there were other Brits and Northern Europeans but predominantly Spanish people.

We spent seven years living in Spain and during that time allowed our UK credit cards to expire in favour of doing business the Spanish way, with hard cash.

Recently for reasons beyond our control it became necessary to return to England and back to our old home. While we were aware that we needed to purchase essential furniture for the house, we hadn’t given any thought to our lack of credit cards.

OK we had cash at the bank, but we arrived with no car and a difficult though not impossible walk to reach the bank, where there is a daily limit for withdrawing cash.

It was obvious that we needed to apply for a credit card to make our lives that much easier and set about re-furnishing our home.

A few months later we are still getting there, but we have the essentials in place, thanks to the enormous array of online shopping sites and of course a valid current credit card, something that we have found it is impossible to live without in the UK in our current circumstances.

Despite the dreadful English weather it is nice to be back home, until the next time.

The key to beating your debt problem is to tackle it sooner rather than later. If you regularly receive warnings over late payments then start at a very basic level. If you haven’t yet devised a weekly budget then write one out and stick to it. Key to overcoming a debt problem is being aware of it and its severity; burying your head in the sand and ignoring credit card statements won’t make the problem go away.

Once you’ve developed a budget and are confident in its feasibility, it’s time to take a long, hard look at your outgoings. If you’ve been made redundant and are experiencing cash flow problems then a budget may be easier to stick to – it is often more difficult for people used to weekly or monthly treats such as big nights on the town or regular shopping trips. If you’re prepared to show a bit of self determination and cut back on life’s little luxuries, you’ll find your finances get back in shape sooner rather than later.

Credit cards are a fantastic way of borrowing money and, if used correctly, are the cheapest too. There are an incredible number of deals available, and if you can get zero per cent on purchases and balance transfers for a year, you’ll be laughing – providing you remember to pay off your debt as early as possible. There is a flip side however – if you get it wrong, don’t do your research and fall behind on payments your debt problems can intensify and last for a number of years.

It should be remembered that there are two types of debt. Debt by itself is not a bad thing; it’s something that the majority of us will have to utilise at some point or another in order to advance in life. Without debt, very few people would be able to go to university or buy a house, and if used correctly it can be an invaluable tool. The distinction is with bad debt, which really began to emerge during the economic downturn and subsequent recession.

A spiral of bank collapses and redundancies began in September 2008 with the collapse of US financial services company Lehman Brothers. Many people who lost their jobs began to really struggle with their debt after losing their incomes, a situation that can rapidly turn into a living nightmare. But if you’re in a stable job and still experiencing debt problems, what can you do to curb your expenditure?

The danger with credit cards is that people use them to supplement their everyday spending, something that is easily done because of the lack of structure surrounding this particular form of borrowing. While this has obvious advantages in terms of flexibility, those less responsible can soon become reliant on their plastic friends. How many times have you seen the person in the queue in front of you at a clothes outlet, restaurant or music store pay using a credit card rather than a debit card?

If you want to use your credit card correctly, make sure that any expenditure is planned, budgeted for and as inexpensive as possible. A sign of an impending debt problem is reaching for your credit card to ease the outgoings from your bank account. If you find yourself in this situation, stop and think whether you can really afford or need what you want to buy, and whether you may be able to a few weeks or a month further down the line.

Every credit card holder should strive to be a responsible borrower, and this isn’t simply a case of borrowing as little as you can and drawing up a budget. You might be the most prudent spender among your family and friends, but this will mean very little unless you’re able to pay the debt back quickly. It’s also true that the faster you pay it back, the less expensive it will be – and if you’re saving money, you’ll be able to afford more things. Simple.

Arguably the best way to keep track of your credit card expenditure is online. You could wait for your monthly statement to fall through your letterbox, but with lenders stepping up their efforts to be more environmentally-friendly and use less paper, this is becoming a less common way of finding out how much money you’ve borrowed and how much you owe. Instead, register your credit card and bank account to be available online and have access to both via your bank or lender’s website.

While this is great way to keep tabs on how much you’re spending, customers are encouraged to be vigilant against phishing emails. These special types of spam emails are designed to steal your money. How do they work? Well, it’s pretty sneaky – they trick you by being cleverly disguised to appear from your bank or financial services provider before encouraging you to type in and submit your details. Once the phishers obtain these, they have full and unrestricted access to your cash.

The good thing is that there is no need to be caught out. The golden rule is to never, ever click a link and enter your password, even if you believe it to be from your bank. If it appears genuine, it’s always a good idea to give your bank a call to check or visit their website directly.

With these tips, you can look forward to living a life free of debt problems, providing you follow the few simple steps. Once you’re able to track your spending online, you’ll become more confident about sticking to your budget and, in time, begin to reap the financial rewards.

One such issue could be the facility to make payments for day-to-day items without having to draw cash from your business bank account or petty cash tin.

Setting up meeting rooms, arranging travel, organising staff expenses, paying for working lunches and settling utility bills online -  these are just a few of the areas where a credit card could become invaluable. But what type of things do you need to consider when shopping for the right package?

A Lloyds TSB Business Credit Card can offer a number of flexible ways to make sure all of these overheads are dealt with in a timely fashion, as well as providing a facility that keeps the cash flow moving while keeping you in control.

For those who are reluctant to set up credit facilities a more suitable option might be the Business Debit Card. With this you can get access to money from any number of cash machines across the world and you can use the card online and over the telephone.

The third option available is the Lloyds TSB Business Charge Card, which gives employees the ability to sort out their own expenses. However, with account limits and card numbers set by you, you can maintain control of the company outgoings with relative ease.

In addition to all of this, small business customers who choose any of the above facilities will be protected by the Lloyds TSB ClickSafe service. This means that train tickets, stationary, hotels, events and any other online purchases are given a little extra security – which should give you greater peace of mind when using the web.

In the same way as you would enter a PIN number when using a credit or debit card in person, Lloyds TSB ClickSafe allows you to set up a personal password to confirm your identity when visiting internet checkouts. The option is also known as Verified by Visa and MasterCard SecureCode and is designed to address the growing need to use the web to pay for goods, with additional protection against card crime.

Maria Sebastian, vice-president of sales and marketing EMEA at American Airlines, said: “American Airlines is delighted to have teamed up with MBNA to introduce its new co-branded AAdvantage American Express UK credit card.”

The AAdvantage® Programme was actually the first of its kind, and today is the world’s largest frequent flyer programme. Established in 1981, the programme now has in excess of 60 million members. Members can earn miles at over 1,000 participating companies.

In 2008 alone, AAdvantage® members redeemed in excess of 155 billion miles to claim over 4.8 million awards for flights, upgrades and car hire. You can now use AAdvantage miles to pay for holidays through one of the largest and most reputable airline-owned tour operators.

With over 1,500 hotels in 300 destinations around the world, American Airlines Vacations can plan your next holiday, and even give you bonus AAdvantage miles for doing so!

You can use AAdvantage miles either by themselves or with a credit card co-payment to book and pay for your hotel accommodation, car hire, transfers and sightseeing packages all in one go.

There are so many solid, long-term benefits this card truly offers amongst some of the best reward deals available. For the first 6 months, 3 AAdvantage® bonus miles can also to be earned with every £1 you spend on fuel, supermarket shopping, and American Airlines purchases.  And in the first 12 months, all new customers will also be entitled to 0% interest on all American Airlines flights purchased.

Why not fly American Airline’s Transcontinental Service between New York and Los Angeles or San Francisco, for example? You will find yourself earning up to a quite staggering 50,000 AAdvantage® Bonus Miles. The window on this particular deal is between April 6, 2010 and June 30, 2010.

With 10 daily non stop flights between New York (JFK) and Los Angeles and 5 between New York (JFK) and San Francisco (SFO), the only limitation may be your imagination.

Because not everyone is a frequent traveller, miles can also be earned through non-travel-related partners including assorted financial and retail partners, which include more than 30 hotel chains representing upwards of 60 brands, exceeds 20 airlines, eight car hire companies, 12 financial companies and over 250 brand name retailers.

Perhaps you might consider taking up the Hyatt Gold Passport?  AAdvantage members are invited to earn 3,000 miles on every two-night Hyatt stay between January 15 and April 30, 2010.

This bright partnership will introduce new customers to a whole plethora of benefits and advantages. Should more miles be needed – there is an option to simply purchase the American Airlines AAdvantage® miles you need to reach your award travel goal and redeem your miles for your next trip.

Had you thought of ‘gifting travel’ by giving MBNA AAdvantage® miles to a friend or family member? Miles may be purchased for a friend or family member to allow them to experience some top quality travel too.

There is even an offer for those who wish to share! If you have extra AAdvantage® miles and know someone who could use them or do you need miles and know someone who has extra? Transfer miles between accounts now through to April 30, 2010, and earn up to 30% bonus miles for either member — sharing member’s choice.

With the AAdvantage Credit Card you can have up to three additional cardholders on your account at no extra charge. You are able to add one extra cardholder during the application process. Any additional card holder must reside at the same primary address, and have a relationship of close family member.

Greg Reed, chief marketing officer for MBNA, said: “This is a product that will be of real benefit to frequent travellers. The rewards programme is comprehensive and wide-ranging, and we are delighted to have teamed up with American Airlines and American Express to develop a product that provides real added value for customers.”

MBNA Customers will also have the opportunity to let others benefit as they travel. Charity affiliates include UNICEF, Kids In Need, National Foundation For Cancer Research, Susan G Komen For The Cure, United Service Organization, Operation Hero Miles and AAdvantage Fund Raising.

This travel credit card quite clearly sits amongst the MBNA portfolio, including football credit cards and charity credit cards.

The Admirals Club offers a real haven whilst on the move. You can either get an Admirals Club® membership or perhaps just try the Admirals Club’s One Day Pass. This facility is a wonderful way to relax in quiet comfort before, after or in between flights. You’ll enjoy the personalized, professional service from the Admirals Club staff.

Admirals Club lounges offer a wide variety of amenities such as individual workstations, computers with Internet access, local and long distance telephones, and data ports so you can get work done on the move, in comfort, on time, every time.

The Club boasts shower facilities, children’s rooms, music rooms, complimentary coffee, tea, and soft drinks. A variety of sweet and savoury snacks are available for purchase, not to mention specialty salads, sandwiches and small bite samplers from the Club’s Amora™ Fresh Food menu.

Of course, doing business with MBNA comes with its own rewards. Free 24 hour UK based customer service helpline – wherever you are worldwide, whenever you need them, American Airlines customer satisfaction representatives are just a phone call away.

Also, every year, the AAdvantage program has a reduced mileage award where certain rewards require fewer points to redeem.

There is also unprecedented fraud protection. You will not be liable for fraudulent transactions online or on the high street, providing you contact customer service as soon as you notice any unusual transactions.

This account is set up with paperless statements. To access your statement simply enrol with the Online Banking service, where you’ll also be able to check your balance, transaction history, view your pin, manage your direct debits/balance transfers and much, much more.

You can even apply online, today for you American Airlines credit card! It’s quick, simple and easy to apply; it will only take a few minutes. If you apply online between the hours of 8am-8pm Monday to Thursday, 8am-5pm on Friday you could even get an instant decision.