British credit card obsession ‘still in place’

Britons have not given up their “love affair” with the credit card despite the recent economic crisis, the director of a finance charity has said.

Chris Tapp of Credit Action said that the £100 million rise in such borrowing between August and September showed that there has been no let-up in the practice of many people who use cards for everyday essentials.

He observed: “A lot of people will be using existing lines of credit on credit cards and also seeking new ones,” commenting that the overall drop in credit levels since the financial crisis started is down to a fall in supply, rather than demand.

Such a situation could mean that some people have debt management problems, while others could benefit from having a card with a cheaper rate.

Earlier this week, the government unveiled proposals to reform credit cards in ways that could cut debt.

Among the plans are reversing the current arrangements in place on most cards that mean the least expensive debts are paid off first and the costliest last.

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