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UK Debt Part IV: Plastic Spending Mounts
Industry News
 

Source: CreditandCollectionsWorld.com and SourceMedia, Inc.

Approximately 24.5 million transactions worth $2.85 billion are spent on credit cards per day in the United Kingdom, according to Credit Action, a nonprofit personal finance education organization. Every second, 284 transactions take place in the UK using payment cards (excluding fuel).

The combined value of transactions made on charge, credit, debit and store cards was $1.04 trillion in 2006. UK consumer credit card debt in August 2007 totaled $108.9 billion. Credit cards in issue totaled 181 million last year, which works out to just under four cards per adult in the UK.

More than 4.1 million credit card bill payments were missed in the first six months of 2007, according to MoneyExpert.com. Cardholders who repaid their balances in full during 2006 equaled 58%. The proportion of credit card balances bearing interest was 74.3% in July 2007, according to the British Bankers Association. The average interest rate on credit card lending is currently 17.27%, Credit Action reports.

About half (51%) of the UKs population knows the balance on their credit cards and 46% have no idea what interest rates they are paying on their accounts and debts. Three quarters (74%) of British couples find money the hardest subject to talk about with their partners, reports the Financial Services Authority. FSA also found that 32% of couples lie to their partners about how much they spend on their credit cards.

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