Cutting up cards 'first step to debt recovery'

Making sure they cut up credit cards may be the first step for many towards complete debt recovery, it has been claimed.

According to Mint Financial Services, a person can only resolve not to accumulate further arrears once they have chopped up the plastic.

The firm pointed out that there were a number of long-term problems involved in having debt - including interest on top of the cost of the original purchase.

Debts can be far-reaching and have serious consequences on later life, stated company spokesperson Adrian Kidd.

"You can be penalised for applying for a lot of credit in the last 12 to 24 months. Sometimes you can actually be turned down for a mortgage based on that," he said.

Consumer credit lending totalled £214 billion in June 2007, according to Credit Action.

This marks a 5.2 per cent increase on the same month in 2006.

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