| #ffffff;" /> | | | | repayment of 2% is paid each month, in comparison to |
| Consumers reject financial advice in favour of financial | | | | 19 years with the 3% minimum repayment. Barclays |
| frivolity | | | | even warned of falling profits for the Barclaycard |
| It would appear that even though their | | | | credit card division last month, as more customers |
| “friends” aren’t as flexible as | | | | missed repayments and bad debtors increased. |
| they used to be, consumers are still stretching their | | | | For those consumers with regular incomes and strong |
| credit cards beyond the comfort zone. | | | | credit records, credit cards with APRs as low as 6.9% |
| The vicious circle of debt manipulation involving banks, | | | | are available, that’s less than half the standard |
| consumers and commercial credit companies is putting | | | | APR most consumers have to pay on the cards in |
| consumer spending under strain, as funds begin to dry | | | | their wallet. By just using a variety of online personal |
| up. In May 2005, the Financial Times reported the | | | | finance tools, consumers can save themselves |
| accusation that banks were fuelling Britain’s | | | | considerable grief by undertaking some financial |
| personal debt problem by repeatedly offering | | | | homework. |
| debt-ridden customers loans they were unable to | | | | In the UK, a variety of websites are available to |
| repay. | | | | compare credit cards, loans, life insurance, car |
| As the UK’s personal debt increases by | | | | insurance, mortgages, savings accounts, Child Trust |
| £1 million every four minutes, credit card | | | | Funds and current accounts. With just a few clicks of |
| spending habits still seem to be spiralling out of control. | | | | the mouse, a trusty search engine and a clear |
| According to Credit Action, nearly 66% of the adult | | | | definition of the relevant search terms, such as |
| population have a credit card, with multiple card holding | | | | “credit card guide” or “loans |
| becoming a growing phenomenon in the UK. More than | | | | guide”, the consumer can have swift access to |
| 60% of card holders possess at least two cards, with | | | | a number of useful research sites including |
| 10% holding at least five cards. There has also been a | | | | moneynet.co.uk, moneyfacts, moneyextra and |
| significant rise in the number of personal bankruptcies. | | | | moneysavingexpert. These companies are specially |
| In the year up to March 2005, 37,886 people were | | | | set up to provide impartial consumer information and |
| made bankrupt, a 30% increase on the previous year. | | | | by using them for personal finance research, the |
| Credit Action reported that some credit card | | | | consumer could effectively save thousands of pounds |
| companies reduced their minimum repayments from | | | | by choosing the most appropriate credit card, loan and |
| 3% to 2% last month, which has been seen by some | | | | mortgage accounts, not to mention securing good |
| as irresponsible. To put this into perspective, a | | | | deals on car insurance, life insurance, travel insurance |
| £3000 credit card balance at 17.9% APR would | | | | and household insurance. |
| now take more than 40 years to repay if the minimum | | | | |