You are here: Home - Credit Cards & Loans -

Brits cut down on credit-card spending

0
Written by:
19/02/2008

The average credit card balance in January 2008 of £2,168 was 25% lower than the previous year, according to financial website Moneyextra.

The research from Moneyextra showed January 2007’s average outstanding balance of £2,901, and January 2005’s average was £3,411, pointing towards a gradual reduction in the British public’s credit-card spending habits.

Robin Amlot, spokesperson for Moneyextra, said: “There is a clear trend of falling outstanding credit card balances over the course of the last three years. The question is whether this actually reflects consumers clearing debts or merely a rescheduling of them.”

He added that although some consumers are likely to be paying down their credit cards, others have probably been rescheduling expensive high-interest rate short-term credit card debt onto longer, structured loan products with lower interest rates.

“This means they will have been able to reduce their monthly outgoings but potentially at the expense of a much larger interest rate bill over the whole course of the loan repayment,” Amlot concluded.

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

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
One third of borrowers worried about repaying debt

Nearly one-in-three indebted people are worried about managing their debts, according to price comparison site Moneyexpert.

Close