Survey Indicates Slow Season for Credit Cards

Posted 2007-11-2

A report released today suggests that consumers will curtail their credit card spending this year. 

After polling 2,000 adults, Thomas Charles, the debt counseling service, warns of a possible slow-down during what is traditionally the busiest shopping season of the year. 

Approximately one-quarter of those questioned claimed they will try not to spend on their credit cards.  Ten percent say they will not put any major charges on their cards. 

One reason many may be unwilling to add to their credit card debt: approximately 15 percent already have unsecured debt and loans amounting to £10,000. 

Increases in interest rates and the subsequent rise in mortgage payments are forcing many Britons to buy everyday items with credit, a practice that many of them cannot afford. 

James Falla, managing director of Thomas Charles, says the survey indicates that consumers are trying to manage their debt load.  He sees it as good news for the consumer, although it may not help retailers who look for strong sales during the festive season.

Estimates indicate that total current debt among Britons is around £1.5 trillion.

Leave a Reply