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"Continued rise in UK credit card defaults"

By admin | April 28th, 2009 | Credit Cards

According to a recent report the level of defaults on credit card debt in the UK is continuing to rise, with a rising number of people finding that the financial crisis and the recession are leaving them unable to keep on top of their credit card and other financial commitments.

The data comes from Fitch Ratings, which said that a rising number of defaults on credit cards trusts had been reported for the month of February.

Fitch said that delinquencies on credit cards had been showing a month on month increase for the past six months, and in February of this year reached an all time high.

Furthermore, it is thought that the level of delinquencies will continue to rise over the course of this year, fuelled by continued financial turmoil and job losses stemming from the ongoing recession. Officials said that the continuing economic downturn in the UK would have a profound effect on consumers’ ability to make debt repayments.

The information comes from Fitch’s ‘Credit Card Movers and Shakers Report’ for February 2009. Repayment of credit card debt has become a big problem for many households and consumers, as the financial crisis continues to bite and cause chaos across the country. Over the past six months many people have lost their jobs as a result of the recession, which has clearly impacted on debt repayment ability, and has seen default figures in many sectors increase.

Industry officials have urged any consumers that are struggling to make repayments on credit cards and any other debts to contact their lenders as early as possible in order to discuss the options and reach a repayment agreement, as this will then help them to avoid costly fees, charges, and even court action.

Tags: credit card debt, credit card defaults

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