Latest News

The UK Cards Association clarifies trends in customer repayments on their credit cards

05 October 2011

David Cameron today spoke of consumers paying off their credit cards. This reflects what consumers have been doing since 2005, pre-dating the credit crunch. Repayments have risen and spending has remained flat.

Outstanding debt on credit cards is currently £57 billion, down from a peak in 2006 of £69 billion and is now at a level last seen in 2003. Overall, credit card debt accounts for less than 4% of the £1.45 trillion owed by UK consumers.

A third of credit card debt is paid off in the month in which it is spent, meaning that it is not really being borrowed and incurs no interest. This is because 62% of credit card holders pay-off in full each month (up from 54% in 2003). The true figure for credit card debt is therefore closer to £38 billion.

If consumers are experiencing financial difficulty the industry has measures in place to help them so they should not ignore the problem but speak to their bank or one of the free debt-advice agencies.

Glossary View Items Highlight Unhighlight
You are here:  Home / News  / Latest news / News 2011 /  The UK Cards Association clarifies...
 
 
 
 
RSS
 
 
Loading...
Close Glossary

Glossary of words on this page