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"Brits could become addicted to credit cards again next year"

By admin | November 9th, 2009 | Credit Cards

It has been claimed by officials from the International Monetary Fund that the British public is fast heading towards becoming addicted to credit cards and other forms of consumer credit again next year, after a temporary lull that was caused by the global credit crunch and the difficult financial climate.

It has been predicted that consumer debt will surge by 2.4 percent next year, compared to a 1.7 percent rise in the eurozone and a fall of 2 percent in the United States.

Furthermore the IMF has predicted that by the end of next year Britain will come out on top for the highest level of defaults between 2007 and 2010 in the European league.

Indications that Brits are starting to fall in love with credit again have also been backed up by data from the Bank of England, which has reported a sharp rise in lending on credit cards for the month of August.

Whilst no reason has been given for why Brits are expected to start using plastic heavily again next year officials have said that many Brits tend to rely on consumer credit of different types simply to allow them to maintain the standard of living that they have become used to, despite the fact that borrowing is still very expensive.

Britain and Ireland are said to have shown a significant increase in delinquent card lending according to the IMF.

Over the past eighteen months many Brits have been trying to cut back on credit card spending due to financial restrictions and more recently due to the recession.

Difficult credit conditions have also made it harder for some people to get credit cards, which has seen the level of credit card debt affected as well.

However, some have now said that lenders are easing up with restrictions on credit cards and other types of finance, and there may be plenty of Brits that are waiting to take advantage of this.

Tags: credit card addiction, Credit Cards

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