Inflation 'may encourage credit card debt repayments'

Consumers may be more encouraged to turn their attentions to credit card debt repayments due to the current level of inflation they are facing.

That is according to the Informed Choice chartered financial planner Martin Bamford, who notes that low interest rates could also be a factor leading to this trend.

He commented: "Low interest rates and high price inflation could put some people off savings, although it could also prompt more people to use their savings to repay debt such as credit cards."

Commenting on inflation rates in general, the expert went on to say that older people may be struggling more than other consumers.

Mr Bamford pointed out that higher inflation can be an issue for the elderly as larger rates may apply to the products they purchase.

Last month saw the UK's level of CPI annual inflation rise to 3.5 per cent, figures from the Office for National Statistics have revealed.

Posted by Tom Burroughs.