Credit card addicts continue to defy credit crunch
April 10, 2008
Whilst many people have had to tighten their belts and cut back on spending due to the turmoil caused by the global credit crunch and tighter lending conditions, it seems that many credit card addicts are not only continuing to spend and accrue debt during these difficult times, but are also juggling five or more credit cards. A recent report suggests that over three million Brits have five or more cards, and in some cases are clocking up debt on all of their cards as they continue to frivolously spend.
One industry professional said that whilst it was fine for consumers to get credit cards to save them money – such as balance transfer cards – having this number of cards and spending on them all could lead to real problems. He said: ‘It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% 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.’
The report goes on to state that over the past year a third of Brits have applied for another credit card, although with the current tighter credit conditions resulting from the global credit crunch many may have found that their application has been rejected. Experts state that many Brits are still spending way more than they can afford on their credit cards, and this is going to lead them into financial trouble and simply add to the UK’s personal debt mountain.
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