Bad Credit On The Rise!
Credit card debt per UK consumer now stands at £4,506 per adult, according to Credit Action’s September debt figures. Figures for 2005 show that credit card arrears continued to rise, while the number of people refused credit stood at 9.1 million. This figure is expected to increase to 9.4 million by 2010.
One reason for the high credit card balances may be the number of people who pay only the minimum amounts on their credit cards. More than 3 million UK credit card holders only every make the minimum repayment.
Meanwhile, credit card ownership is on the rise. A study by APACs found that there are now more credit cards in the UK than people. That’s 74.6 million credit and charge cards, compared to only 60 million people.