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15/04/2004
UK credit card debt rises to £53.5bn
Credit card debt has grown to its largest ever figure with the average UK card holder owing more than £1,100, according to the latest report.
Outstanding balances on credit cards have risen by more than two-thirds over the last four years, mainly as consumers become more familiar with using credit cards to make purchases. According to the report compiled by Datamonitor, credit card debt has risen to £53.5 billion in 2003.
The report suggested that the strong growth in the number of cards held in the UK was being driven by a search by consumers for the lowest credit terms on the cards that they held.
There are now more than 65 million cards in the UK, but the number of cards held was not a concern unless the repayments became a problem, the study concluded.
The research indicated that if current trends continued there would be 90 million cards in use by 2008. If this trends continued there was likely to be further pressure for competition in the credit card sector as consumers continued to seek out the best rates on outstanding credit card borrowing and on credit balance transfers.
However, the concern remains that if interest rates rise there will be an associated failure to meet repayment terms.
A recent report indicated that there had been a substantial rise in the number of personal insolvencies in the first quarter of this year.
(SP)
Outstanding balances on credit cards have risen by more than two-thirds over the last four years, mainly as consumers become more familiar with using credit cards to make purchases. According to the report compiled by Datamonitor, credit card debt has risen to £53.5 billion in 2003.
The report suggested that the strong growth in the number of cards held in the UK was being driven by a search by consumers for the lowest credit terms on the cards that they held.
There are now more than 65 million cards in the UK, but the number of cards held was not a concern unless the repayments became a problem, the study concluded.
The research indicated that if current trends continued there would be 90 million cards in use by 2008. If this trends continued there was likely to be further pressure for competition in the credit card sector as consumers continued to seek out the best rates on outstanding credit card borrowing and on credit balance transfers.
However, the concern remains that if interest rates rise there will be an associated failure to meet repayment terms.
A recent report indicated that there had been a substantial rise in the number of personal insolvencies in the first quarter of this year.
(SP)
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