uSwitch accuses providers over card debt

04/09/2008

Britons are becoming more indebted on their credit cards than ever, uSwitch announced today.

The price comparison website said that credit card spending had risen by around £180 million each quarter over the past year.

However, 11 per cent of cardholders were found to be meeting only the minimum payment each month - meaning that they are getting deeper and deeper into debt.

uSwitch also accused providers of exacerbating this situation - citing figures which showed that the average minimum repayment has gone down from 2.65 to 2.54 per cent over the past 12 months.

Simeon Linstead, head of personal finance at the site, commented: "Over the past year we have seen an increase in credit card spending, making minimum repayment levels more of a problem now than ever before.

"With the cost of living on the up and people being forced to tighten their purse strings, consumers will be more tempted to just make the minimum repayment on their credit cards and spend the cash on more pressing bills."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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