Credit card debt could decline as people try to take control of finances
Credit card debt could decline as people try to take control of finances
- Thursday, 17 February 2011The number of people facing
debt problems because of overspending on a credit card may decline as consumers are turning to debit and prepaid cards instead.
According to Keith Harrington, managing director at Global Prepaid Exchange, which offers services to the industry, credit card usage is declining.
He said: "Credit cards are on a decline because people are trying to manage their finances better and not incur charges.
"Debit cards are increasing, but prepaid card are rapidly increasing because people are seeing so many opportunities [with them]."
This could suggest that Brits are starting to realise that using a credit card can be risky in terms of accruing debt and possibly needing a
debt solution in the future.
Mr Harrington also claimed that consumers are now starting to use prepaid cards, which are uploaded with cash and can be used in specific stores.
Research by his firm, which was released on February 7th, found that 2011 will experience a boom in innovative payment methods.

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