Although introduced relatively recently credit cards have become firmly entrenched in the average British household, and are used for a wide variety of spending from the weekly shop to booking a holiday. Their flexibility and ease of use have made them a popular alternative to carrying around cash and increased security measures such as the new chip and pin technology help people feel more secure in using them.
Credit cards are also a great way for generating extra cash, something that many people living in Britain are looking to do, whilst the economy goes through a down turn. This extra cash can be used to pay increasing household bills or for luxuries that otherwise would not be affordable. The interest rates on credit cards are competitive and many offer interest free deals in order to entice customers, so it is no wonder that more and more British consumers are deciding to get one.
But it seems people are not just stopping at one card. Cheap introductory deals coupled with the increase in household bills is encouraging people to take out more credit in order to get by. Research by MoneyExpert.com has found that over three million people living in Britain now own at least five or more credit cards with 1.8 of them owning more than that. Applications for new credit cards still remain high with twenty-eight percent of Britons applying for a new card in the last twelve months. It would appear that nowadays people are requiring more credit to stay afloat so they are applying for more credit cards. However whilst obtaining the cards might be relatively easy, actually making the repayments on four or five cards could start to become more difficult.
For some people juggling a high number of credit cards makes financial sense. Transferring high balances onto cheap or zero percent interest rate can save consumers money. With so many deals on the market there is still a lot of choice for the consumer, something which has dramatically declined in other financial markets such as mortgages. Problems start to arise however when people cannot make the minimum monthly repayments. Once this happens, it can be a slippery slope to bankruptcy if a suitable solution is not found. Some people who have missed payments have found that their credit ratings have been adversely affected and that it becomes difficult for them to obtain another credit card. What is being found in these cases is that there is an alarming trend for people to falsify their details on credit card applications in order to secure another card. A study by Apacs, found that credit card fraud had increased by 25 percent in the UK. Experts believe that this increase in fraudulent applicants hides the
worrying fact that more people are getting into debt, which is going to lead to further negative implications for the British economy. Overall credit card debt if managed cleverly can provide a way for people to handle their financial situations well. On the other hand, it could encourage people to spend more than they have and result in further debt problems.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Just want to be free from dept.
By: Rose | 21-09-2008
I do not own a credit card, how can I get companies to just bill me, rather than always ask for a credit card?
Algebra 2 word problems on systems with three variables
By: olivia | 21-09-2008
A company placed $1,000,000 in three different accounts. It placed part in short-term notes paying 4.5% per year, twice as much in government bonds paying 5%, and the rest in utility bonds paying 4%. The income after one year is $45,500. How much did the company place in each account?
Where may I find a site for a Harrison County West ...
By: Jane Yerkey | 20-09-2008
Where may I find a site for a Harrison County West Virginia Geological Natural Resources Map
I have heard that Wells Fargo Bank is having some ...
By: DBG | 20-09-2008
I have heard that Wells Fargo Bank is having some problems. Does
anyone know anything about this?
Refinanace and improvements
By: Milden | 20-09-2008
I am needing to refinanace my mortgage by november, we (my wife and I) have lived here over 5 years and have a small equity line as well. I am wanting to do improvements to the home as well, such as new flooring and heat and a/c . any recommendations?
What's the best way to get $50,000 a year from $1 ...
By: cattif | 20-09-2008
What's the best way to get $50,000 a year from $1,000,000.00 . for the rest of your life
Q&A Powered by:
Latest Credit Articles
How To Cope With Credit Card Debts
By: Stephen Chua | 10/10/2008
Credit card debts can be very stressing for many people. However, there are many things you can do to cope with it. This article reveal some of the things you can do now to reduce your debts and stress.
Credit Repair and the Secret to Rebuilding Your Credit
By: Jim Kemish | 10/10/2008
Credit repair can produce life changing results. The process can be quick and satisfying if you know what to do. A credit repair expert reveals powerful credit rebuilding secrets that will help you reach your goals easily.
Tips On Receiving A Bad Credit Loan
By: Kay Brown | 10/10/2008
One of the biggest causes of stress and marital breakup is financial debt that couples incure in effort to acquire the good life.
Is it Possible to Raise My Credit Scores?
By: Chane Steiner | 10/10/2008
The first consideration when you're trying to raise your credit scores is to know where you currently stand. Everyone has scores that range between 300 and 850. This number determines if a creditor will extend credit to you as well as interests rates you might pay, is based on your ability to repay a loan, the interest rate you might be offered, as well as often determining rental or mortgage payments.
Consider Business Credit Card in Your Business Operation
By: optimizer | 09/10/2008
If you’re on your way to start a business or have already established a business, perhaps applying for a business credit card would be your next move. There are many advantages in using a business credit card and being able to build your business credit history is just one of them.
Credit Secrets and Myths
By: Rook Davis | 09/10/2008
Good credit is a great thing to have, but beware of the supposed "shortcuts". Find out what things can get you in hot water.
Verify Your Client Credit Cards With Bin Database
By: Gen Wright | 09/10/2008
BIN Database is a useful service for online merchants, online payment processors and other financial institutions that will help them in verifying their customer's appliations by checking BIN numbers of their credit cards. BIN Database contains the information about the issuing bank, country, and credit card type.
A Quick Word of Advice for Students Looking to Take Out Loans
By: Gen Wright | 09/10/2008
There are many reasons why a student may wish to take up loans. Sometimes, these reasons appear very logical at that time.
More from Danielle Fletcher
Police Force Face Claims for Race Discrimination
By: Danielle Fletcher | 10/07/2008 | Personal Injury
Over recent months the British Police Force has found itself dealing with a number of claims for compensation due to discrimination in the workplace on grounds of race and ethnicity. One Police officer has submitted a claim for £500,000 pounds because he believes he was discriminated against and denied a promotion unfairly.
Moving House in the UK is an Expensive Business
By: Danielle Fletcher | 10/07/2008 | Mortgage
The whole process of buying and selling houses can be very expensive and is additional stretch on people’s finances. Two of the biggest costs are conveyancing and tax which can add thousands of pounds on both the buyers and sellers bills.
More People Choosing to Rent
By: Danielle Fletcher | 10/07/2008 | Mortgage
Recent figures show the number of houses sold in the UK in the last five months has fallen by 32 percent compared to the same time last year. Figures by the HM Revenue and Customs which record the houses purchases of properties worth more than the initial forty thousand pound tax band, show that the number of properties sold between January and May 2008 was only 504,000 which is down from 743,000 last year.
Loans Lead Companies Branching Out
By: Danielle Fletcher | 10/07/2008 | Loans
For banks and other financial institutions finding enough people who want to use their loan products has not typically been a problem in the past. However due to recent events within the global financial markets, lenders have tighten up their lending criteria across a range of their products to ensure they are not going to lose money by lending to high risk individuals.
Brits are Taking More Cash on Holiday to Avoid Credit Card Charges
By: Danielle Fletcher | 10/07/2008 | Credit
Credit cards have become a prominent part of modern day life with British consumers using them to pay from everything from the household bills to purchasing a new car. More people have also started to use them abroad on their holidays as a convenient way to pay for goods and services or as a means of withdrawing cash.
Legal Firms Struggling to Find Conveyancing Work
By: Danielle Fletcher | 09/07/2008 | Mortgage
Legal firms who specialise in offering a conveyancing service are beginning to struggle to make the profits they were once used to. The downturn in the housing market has meant there are far less buyers and therefore fewer houses are actually selling.
Cap on Compensation for Whiplash Injuries to be Reviewed
By: Danielle Fletcher | 09/07/2008 | Personal Injury
Car insurers in Canada are predicting a steep hike in insurance premiums if a current cap on compensation payments is removed. The average increase in rates is estimated at around eleven percent, which is a huge increase and way above the rate of inflation.
Asbestos Victims are Dying Before They Can Receive Their Compensation
By: Danielle Fletcher | 09/07/2008 | Personal Injury
People living in Australia, suffering from mesothelioma, a disease caused by asbestos poisoning are passing away before their claims for compensation are being heard. One Sydney Judge believes this is due to a cost saving measure which was implemented in 2005.
Finance 
