Credit cards are now a way of life

BBC News Online's Julie Cramer talked to Carl Dever, who will be paying off his debts for six years despite seeking help when his situation reached crisis point.

Carl could be described as a typical young man who enjoys going out with his friends, buying nice clothes and splashing out on a foreign holiday or two each year.

But he is also one of a growing number of twenty and thirty-somethings who have fallen prey to the ease of consumer credit - in the form cards and loans - only to find their finances spiralling out of control.

The 26-year-old civil servant from Liverpool admits to current debts of over �30,000, which are spread over three credit cards.

Carl also has two loans, which he says he only took out to pay off his cards.

"I got my first credit card in 1996 after leaving school and it really just went from there.

"Once I'd spent my pay packet for the month I'd just take out �50 here and there on my card, not thinking it would make much difference.

"I also think I was far too generous for my own good. I wouldn't think twice about buying things for friends."

Bombarded with credit

Even though Carl lived at home with his parents and was in full time employment, it took only a few years to build up a massive amount of debt.

"It was just all so easy. Credit card leaflets would just fall through the door.

"I was never really questioned when I applied for credit, and never had to lie about other money I owed.

"And the more I owed, the more my credit limit was raised without me even asking."

The more I owed, the more my credit limit was raised without me even asking

Last year the burden of debt became so great, that Carl knew he needed help. And it was actually one of his creditors who put him on the path to that help.

"Barclays told me about the Consumer Credit Counselling Service (CCCS) after seeing I'd missed so many payments.

"I decided at that point enough was enough and gave them a call."

Interest freeze

Carl spoke to "an incredibly helpful advisor" called Janet, in the Chester office, who immediately worked out a debt management plan for him.

It was all worked out over the telephone, and Carl also received an information pack, with practical advice such as '100 ways to budget'.

It was unbelievably easy for me to get as much credit as I wanted - but I was also foolish enough to take it

Carl now pays �490 a month to the charity, which in turn pays an agreed amount to his creditors, after having negotiated with them to freeze interest charges.

Despite having to adapt to some rather difficult realities - such as only having a few nights out per month, Carl says tackling his problems has not been as bad as expected.

He still has around �300 per month left after paying the CCCS, and some money to his parents for keep - and is even starting to save a bit too.

"I've now learned that if I don't have the money to go out - I won't. I'll just stay at home, and have even started to read books.

"I don't take the bus to work anymore, I walk instead. It's made me fitter, and I'm starting to feel more positive about things."

He also says that the mountains of credit card offers that still fall through the letter box on a regular basis are promptly returned to sender.

Prospect of bankruptcy

Carl's own experience of debt has allowed him to impart sound advice to his friends - some of whom have also now found help through the CCCS.

"Before, debt wasn't something I could easily talk about with friends or my girlfriend. Men aren't very good at that sort of thing.

"But many of us are in the same boat, and when you're all skint, there's less pressure to go out and spend."

Bankruptcy is a scary word - I really didn't want to go down that road - it's an easy way out

In extreme cases of debt, the CCCS may advise a young person to consider bankruptcy, which would allow them to be debt-free in three years.

But even though Carl knows it will take him around six years to be fully clear, it is not something he is considering.

"Bankruptcy is a scary word - I really didn't want to go down that road. It's an easy way out.

"It was unbelievably easy for me to get as much credit as I wanted - but I was also foolish enough to take it.

"I spent the money, so it's up to me to pay it back."