Related Credit Card Article

"Credit card borrowing rockets due to credit crunch"

By admin | May 19th, 2008 | Credit Cards

According to a recent report borrowing on credit cards has rocketed over recent months as a result of households struggling to keep on top of their finances, and the problems caused by tighter credit conditions stemming from the global credit crunch. Figures for March showed that the level of unsecured debt in the UK had risen by £2.35 billion, with credit card borrowing along rising by nearly three times compared to January to £350 million.

It is thought that many consumers may be using their credit cards to fund day to day purchases and to pay bills, and in some cases even mortgage repayments, as the financial strain continues to takes its toll. Households have had to put up with a range of rising costs, such as energy bills, petrol, food, and water bills, and with mortgage repayments still high many are finding it difficult to make their income stretch as far as it needs to, resulting in the need to rely on credit.

Industry officials have said that consumers should try and avoid using credit to fund their day to day living costs, but added that in cases where this could not be helped consumers should try and find the best deal possible, such as a 0% purchase credit card, so that they would not get hit with additional interest. There are a number of cards available on the market, and customers that have decent credit should find that they still have a fair amount of choice.

Consumers have also been urged to check the small print on their credit card before spending, as there may be additional charges and fees in the small print, and also to avoid making cash withdrawals and transactions wherever possible, due to the high transaction fees that credit card providers charge.

Tags: credit card borrowing, credit crunch

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