Credit Card Balance Increases Could Be Likely In the Future
The UKs infatuation with credit, especially via the form of the credit card, is something that has placed a lot of consumers into serious debt. Many people are often only paying the minimum amount on their credit card every month while never actually paying any of the balance off, simply being charged interest each month.
Director of Credit Action Chris Tapp believes that despite the problems associated with credit card use the UK has a ‘love affair’ with the system and predicts that despite debt problems and the recession it’s unlikely that will see much of a decline in the use of credit cards.
Mr. Tapp Said: “It had been assumed that because of the recession, people would be cutting back. The retail figures over the Christmas [period] don’t really seem to indicate that.”
Mr. Tapp’s comments were made as the Bank of England noted an increase in credit card interest. The average interest on a card rose from 15.89 per cent in November 2009 to 16.26 during December. Although a very small increase, many believe that it could still be enough to affect the lives of many UK consumers trying to pay off their credit card debt.
Of course, with responsible use a credit card can be a great way to pay for items and increase your credit rating at the same time, making it easier for you to find good credit deals in the future.
What do you think? Are you still using a credit card or have you decided that they are more trouble than they are worth? If you’ve ever been in debt, would you ever consider going back to using a credit card in the future or are you steering well clear of the service?