London, United Kingdom
TODAY
|
Showers Min 9°C Max 20°C |
SAT
|
Partly Cloudy Min 10°C Max 21°C |
|
SUN
|
Showers Min 15°C Max 19°C |
Change Location
 Top Story |
Brits crunched into restrained credit card spending British shoppers are showing some restraint with credit card borrowing during the crunch. While the latest figures from the Bank of England demonstrate Brits now owe some £55.6 billion on their cards, the situation could be much worse. If each card in the UK was maxed-out, Brits would slip £253.6 billion into the red, finds research from Opinium Research. The figures is based a multiplication of the £8,234 average limit placed on a card, by the 30.8 million cards estimated to be in the UK by APACS in May 2008. However, not all Brits face equal risk of slipping into the debt abyss. Some 28 per cent of people do not have a credit card, another nine per cent - equivalent to four million people - have £20,000 or more available in credit. It is this latter group most at risk, finds MoneySupermarket.com. "The fact people could blow a quarter of a trillion pounds is alarming. This is surely a big wake-up call to all providers that they must take into account a person's total potential debt when they apply for credit cards," said Steve Willey, head of credit cards at MoneySupermarket. "It's all well and good to give someone a £5,000 credit limit if they can afford it, but huge potential problems occur when that one person is given cards by many different providers each with a £5,000 limit." In response to what the price comparison site calls a "crazy" situation, MoneySupermarket recommends lenders force borrowers to cancel all other cards when offering a new credit account. The Opinium research also finds 12 per cent of people in south-west England have £20,000 or more available on their credit cards compared to only four per cent of people in Wales. Twelve per cent of those in their 60s also have the £20,000+ credit limit while four per cent of those in their twenties do. "Having credit is no bad thing as long as it used prudently. These figures show, on the whole, consumers are behaving sensibly but many banks aren't," explained Mr Willey. "It is smart of people to take out a new card with a long zero per cent purchase offer or generous cashback scheme, but they should be compelled to close the card it replaces."  09 July 2008, 20:01 |
Search MSN for Money News
Ask about Money News
Advertising |
Premium Partners |
Disclaimer |
Privacy Policy |
Email Us |
Jobs |
Add Your Site |
FAQ |
FlightsNetwork |
Flights |
High Interest Saving Accounts |
TV Guide |
Mortgage | Loans | Pay Day Loans | Fantasy Football Draft 2006 | Compare Credit Cards
Mortgage | Loans | Pay Day Loans | Fantasy Football Draft 2006 | Compare Credit Cards
© UK Net Guide 2000-2008. All Rights Reserved.