July 25, 2008
UK amasses £54 billion credit card debt
With the cost of food and energy set to hit new highs, credit card expenditure is also expected to soar. Apacs, the UK payment Association, has reported that the UK now owes a total of £54 billion on credit cards. The findings strongly indicate that the nation is becoming increasingly reliant on this form of payment for the purchase of everyday products and services.
Britain’s current dependence on credit cards has meant that debt has surged, which inevitably increases the financial burdens that are being placed on individuals and families.
The credit card sector, itself , has become embroiled in the fight against debt. Industry analysts have predicted that credit firms can expect to reclaim around 80% of what is currently owed on cards. Obviously, the remaining 20% will not be repaid which will result in these customers being lumbered with a bad credit rating.
Since there is an increase in the amount of consumers who are unlikely to pay back all the money they have borrowed against their cards, lenders are now seeking to obtain more funds from other customers by hiking up interest rates.