You are here: Home - Credit Cards & Loans -

British credit levels reaching boiling point

0
Written by:
09/07/2008

UK consumers have the potential to blow a staggering £253.6bn on their credit cards, according to Moneysupermarket.

While Brits already owe a disturbing £55.6bn on credit cards, the research shows this is small change compared to the further £198bn people could borrow if they chose to max out their cards. While 28% of people do not have credit cards, 9% have £20,000 or more available in credit.

Steve Willey, head of credit cards at Moneysupermarket, said: “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.

“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.

“Some providers are acting responsibly by refusing applications due to a person’s total credit limit on all their cards, but others are still assessing things as though that person doesn’t have another card.

“In many countries, banks will give you a card on condition that you close a card with another provider. This is something the banks or Financial Services Authority need to consider.

“To have a further £198bn available to spend on credit is crazy. To put it into context, that is more than the Government spends annually on health and education put together.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Government launches financial action plan

Action to give people more support to tackle their money concerns has been unveiled by the Treasury and the Financial...

Close