Credit card spending could ruin debt management plans
Credit card spending could ruin debt management plans
- Monday, 2 August 2010British consumers struggling to maintain their
debt management plans may wish to avoid excessive credit card spending.
The head of a leading money education charity has warned that people are beginning to once again rely on their credit card "in a way that isn't healthy", despite the impact of the recession still being felt.
Chris Tapp, director of Credit Action, said that people are taking more risks with credit again and that it is a problem the Government must keep an eye on.
Bank of England figures released last week show that credit card lending rose by £0.1 billion in June this year and Mr Tapp expressed his fear that people are relying on credit too much.
"They can't afford to live on what they have got but they don't have the discipline or budgeting skills and therefore they use a credit card as a financial crutch which allows them to get through in a way which will only provide a sticking plaster to an underlying problem," he said.
Earlier last month, the Department for Business, Innovation and Skills announced that consumers could get their statutory credit report online for £2 after the Government reached an agreement with three UK credit reference agencies.
Experian, Equifax, and Callcredit previously offered the service via post for £2, but they would take seven days to arrive. However, the online service will help people see their credit reports quicker.

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