Related Credit Card Article

"Some consumers increase credit card spending due to credit crunch"

By admin | September 2nd, 2008 | Cash Back & Rewards

The global credit crunch has taken its toll on the UK’s financial markets, and this has had a knock on effect on consumers finances within the UK, with many families struggling to make ends meet, particularly given the tighter lending conditions that have come into play, making it more difficult for many people to get finance. A recent review was carried out into how consumers’ credit card spending habits had changed as a result of the global situation and the financial strains that have been facing households, and surprisingly it was found that many people had not changed their credit card spending habits at all.

In fact, rather than cutting back on credit card spending due to the bleak financial climate a number of consumers have had to increase their credit card spending, using their cards to pay for various essentials and tapping into their credit card funds in order to make ends meet in terms of their finances. The Norwich and Peterborough Building Society carried out the research, and according to the results around 25% of respondents had been spending more on their credit cards because their finances were otherwise overstretched.

A further 50% of those surveyed as part of the research stated that they had not changed their spending habits on credit cards as a result of the global credit crunch and tighter credit conditions, and a number of respondents said that they would be cutting back in other areas to make ends meet financially. This included 13% stating that they would not be going on holiday, and 40% stating that they would be taking fewer holidays.

One official from the building society said: “It is interesting that a large proportion of those who took part in our survey don’t appear to be taking drastic measures with their finances just yet. However our figures do reveal that families are being affected more than most by rising costs. For those families with spare cash to save, an N&P Family Savings Account could help them afford those luxuries in life, such as a holiday or Christmas, or just a rainy day.”

Recent Additions:

• John Lewis raises credit card rates
• PPI sales still causing problems
• Credit card firms adjusting credit limits for different age groups
• Kids are also suffering as a result of the global credit crunch
• Don’t be slack about credit card security

Related Articles:

• Is the global credit crunch going to affect your lifestyle?

  Over recent months the financial headlines have been filled with doom and gloom about the global credit crunch, which made its way across the England from America last summer. The onset of the global credit crunch brought with it a wide range of problems in the financial markets, and the mortgage sector in particular has...

• Consumers advised to ensure that they are getting best credit card deals

  In the current difficult financial climate it has become increasingly necessary for consumers to try and ensure that they are not spending more than they have to on any service or product, and the same is true of financial products such as loans, mortgages, and credit cards. There are many different credit cards for consumers...

• Consumers pay through the nose for cash withdrawals on credit cards

  With credit conditions still tight and household finances stretched to their limits as a result of rising living costs, higher food prices, soaring petrol prices, and rocketing bills, many people have found that they do not have enough money to make ends meet each month. As a result of this many have found that they...

• Will credit card reforms help or hinder consumers?

  As part of its overhaul of the financial sector the government has recently announced a number of changes to credit card regulations, and these changes could have a profound impact on consumers. However, whilst the new regulations were brought in to try and make things easier and fairer for consumers there are concerns amongst some...

• Many people paying mortgage with their credit card

  A credit card is something that most people in the past have used because it offers convenience, ease, security, and a fallback in case of financial emergencies. Many people use a credit card because they can earn rewards by spending on it, and others simply like the convenience and security of not having to carry...

Other Recent Articles

Increase in availability of interest free credit cards

A recent report has claimed that the number of interest free balance transfer credit cards is on the increase, with...

By admin | March 13, 2010 | Read More

Cash back credit cards set to become increasingly rare

The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their...

By admin | March 9, 2010 | Read More

Capital One customers hit by huge increases on credit cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases...

By admin | March 5, 2010 | Read More

New high for credit card interest rates

Recently released figures have shown that credit card interest rates in the UK have reached a new high, despite the...

By admin | March 3, 2010 | Read More

Credit card firms reject many proposals

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the...

By admin | March 1, 2010 | Read More