Many UK Consumers Own Five Credit Cards

UK consumers' love affair with credit cards shows no signs of abating as figures reveal that 2.7m Brits carry at least five credit cards in their wallets and one in four carrying at least three.

Figures released from online comparison site, Moneyexpert, reveal that due to the plethora of credit cards offering interest-free deals on balance transfers for example, that more and more UK consumers have more than three credit cards.

Moneyexpert chief executive Sean Gardner, said: “ The British love affair with credit cards continues. It is healthy if people are switching cards and clearing debts but people are kidding themselves if they rely on moving from one credit card to another just to avoid repaying their debt.

“ Long zero per cent credit card deals are attractive for a variety of reasons and consumers shouldn’t be afraid to take advantage of them.”

With the UK currently in the grips of a personal debt crisis, the news that nearly half the population have one credit card or more will set alarm bells ringing.

Currently one in three UK adults posses at least one credit card, with 11.6m owning three or more credit cards.

Men are actually twice as likely to have at least five credit cards or more, with the majority taking advantage of the many competitive card deals in the UK credit card market.

Mr Gardner points out the importance and financial prudence of borrowing responsibly and enjoy the benefits of the cards that offer interest-free deals and loyalty bonuses. He added, “ The number one rule is only borrow what you can afford to pay back. The problem is at Christmas time that’s a very difficult rule to follow.

“ Credit cards are becoming our biggest Achilles heel – borrowing has become so cheap and minimum payments are so low that we feel absolutely no obligation to pay back as soon as possible. An interest-free attitude can be very dangerous in every sense of the word.”

Paying more than the minimum monthly repayment on your credit card(s) can greatly reduce your overall debt, as you will pay back less interest. Taking out one of the many credit cards that offer extremely low rates of interest for the lifetime of the card’s balance can be extremely useful for those who don’t envisage paying off their cards debt in the near future.

Alisdair Milton
13th December 2006

More Information:

• Do You Need To Have More Than One Credit Card?
  Deciding whether or not to have more than 1 UK credit card can be a difficult decision to make. On the one hand, you want to keep a careful control on your personal finances and having numerous creditors makes this difficult. On the other hand, it can be convenient to have more than one credit card, for example in an emergency. So, should you have more than 1 credit card?
• Why Have A Joint Credit Card?
  There are many reasons why having a joint credit card account may be a good idea for couples. If a credit card is used to manage monthly shopping and household spending, it may make sense for both people to have access to the same credit card account.
  

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