Consumers 'cautious of credit cards'
22/02/2007
Financially "savvy" consumers are becoming more aware of how to use credit cards to their advantage, according to one expert.
A greater awareness of debt has led to a decline in the number of people using credit cards to finance their spending, a spokesperson for the Consumer Credit Counselling Service (CCCS) has claimed.
James Ketchell said that a growing number of Britons are acting cautiously in light of recent industry figurers linking credit cards to debt.
A decline in interest-free periods and an increase in "very savvy" consumers have led to reluctance to use credit cards, the CCCS claimed.
"There has perhaps been an increase in fees and maybe people are starting to realise that using a credit card to make a purchase may not be their best option," Mr Ketchell concluded.
Meanwhile, the British Bankers' Association (BBA) recently revealed that credit card borrowing fell by £0.5 billion over the course of January.
Incoming chief executive of the BBA Angela Knight said that the decline in borrowing on credit cards is "encouraging" and suggests that people are "managing their finances better".
A greater awareness of debt has led to a decline in the number of people using credit cards to finance their spending, a spokesperson for the Consumer Credit Counselling Service (CCCS) has claimed.
James Ketchell said that a growing number of Britons are acting cautiously in light of recent industry figurers linking credit cards to debt.
A decline in interest-free periods and an increase in "very savvy" consumers have led to reluctance to use credit cards, the CCCS claimed.
"There has perhaps been an increase in fees and maybe people are starting to realise that using a credit card to make a purchase may not be their best option," Mr Ketchell concluded.
Meanwhile, the British Bankers' Association (BBA) recently revealed that credit card borrowing fell by £0.5 billion over the course of January.
Incoming chief executive of the BBA Angela Knight said that the decline in borrowing on credit cards is "encouraging" and suggests that people are "managing their finances better".
