Abacus Daily Debt News

Debtors still rely on plastic, expert says

Britain’s debtors are still relying on cards as an easy way to access credit, an industry expert has said, something that he noted has been going on for several years.

Director of national money education charity Credit Action Chris Tapp observed that many people use their credit cards to regulate their income, while others are forced to keep them for necessary living costs.

Noting that lending in this sphere does appear to be performing better than other forms of consumer credit, he remarked: “We haven’t seen the end of Britain’s love affair with the credit card.”

Mr Tapp went on to warn debtors that a fall back into the same habits of years gone by following banks becoming more willing to lend as the economy recovers would be detrimental.

His comments come in response to figures released by the Bank of England, revealing that total net lending had risen by £700 million in September - increasing the need for a debt management solution for many debtors.

By Sarah Adie