Credit and debt news
Spending on credit cards 'still extremely popular'
19 March, 2008
Credit cards are still an "extremely popular" way of borrowing money in the UK, but the growth in spending on them has slowed, it has been claimed
Chris Tapp, director of Credit Action, explained that there are two factors which have caused this.
He said: "People are starting to borrow slightly less than they once did on credit cards and banks are starting to tighten up how much and who they lend to."
Tapp cited the credit card provider Egg, which recently cancelled a large number of cards, as an extreme example of lenders tightening their belts.
Spending on plastic had been "astronomical" in recent years, but is now starting to level off, he concluded.
Earlier this month, MoneyExpert released figures showing that 3.2 million people own five or more credit cards.
It also found that more than a quarter of people (28 per cent) applied for a credit card in 2007.
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