The average per head number of credit cards soared from 2.4 in 2002 to 2.8 in 2007. Increased use of credit cards as a borrowing tool is making the credit crunch worse.
London (longdogfinance) February 20, 2008: Britons are now the kings of plastic money and the use is at its highest altitude compared to any other country in Western Europe, shows a report. According to Independent market analyst Datamonitor, the average British adult now carries 2.8 cards - almost three times higher the number among the French. Norway, the second European country in credit card use, lags some distance behind with 2.3 cards per adult.
The ongoing credit crunch will be worsening with the multiple credit cards available with each Briton. The situation is going to be worse in the first quarter of coming financial year. Near about 28,000 people in the UK will find themselves caught in the debt trap. Debt consolidation loans may help, but credit crunch will definitely be an obstacle in loan availability.
The figure for per head credit cards among Britons has grown from 2.4 cards in 2002 and is expected to exceed an alarming height of three cards per adult by 2011. As loan availability is squeezed now, consumers use debit cards for day-to-day spending. The shocking fact is the increasing use of credit cards as borrowing tools. People are applying for new credit cards to transfer an outstanding balance or to take advantage of interest-free offers. In other European countries, consumers do not treat credit cards as a borrowing tool, and as a result, the effect of debt trap is under control.
Financial experts are warning to squeeze down the use of credit cards to make the total debt volume under control.
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