Credit spending lessons ‘not yet learned’

There is no sign yet that Britons have learned the lessons of over-borrowing before the credit crunch, it has been argued.

Director of finance charity Credit Action Chris Tapp said he hoped people would learn the “lesson of the credit crunch”.

However, he added: “As yet, there has not been conclusive evidence unfortunately that it has been the case.”

The Christmas spending figures suggested that people have been keen to disregard the recession and enjoy themselves as much as possible, Mr Tapp observed.

At the same time, he noted, the average credit card rate crept up between November and December and this could be enough to tip some people “over the edge”.

Mr Tapp was speaking after figures released this week by the Bank of England showed that the average credit card in the UK charged a rate of 16.26 per cent on December 31st, compared with 15.89 per cent a month earlier.

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