Credit crunch does not stop credit card addicts
March 27, 2008
According to a recent report over three millions Brits are juggling five or more credit cards, and although the credit crunch has hit hard over recent months many are continuing to spend, spend, spend on their cards, accruing high levels of debt and paying huge amounts in interest. Credit cards have been blamed for a large portion of the UK’s personal debt mountain, and the number of people with over five cards reflects how reliant many have become on plastic and credit.
Research suggests that many Brits are still spending way above their means via the use of multiple credit cards, and in an increasingly volatile economic climate are continuing to build up huge levels of debt. In the past year along one third of Brits have applied for another credit card, although many may have faced increased difficulties over recent months as a result of the global credit crunch, which had resulted in tighter lending conditions.
One industry professional expressed concern over the way in which many people are using and abusing credit cards, resulting to increased debt and financial problems rather than the ease, convenience, and flexibility that credit cards are designed to offer.
He said: ‘It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% balance transfer deals to ensure that they pay as little interest as possible. But anyone who is trying to juggle five or more credit cards and owes money on all of them is in real trouble.’
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This information comes at a time when experts have predicted that an increasing number of people are likely to become insolvent due to debts and unmanageable financial commitments, and at a time when many are already struggling with financial woes, such as increased energy bills, higher food and petrol costs, and higher mortgage repayments.
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