Credit Cards - Spending Survey

By: David Collins

As the Christmas aftermath dawns on the UK economy, it is predicted that nearly 7 million people will end up paying more on the credit card debts they accumulated over the festive period.

With an estimated ?34 billion being put onto credit cards during the month of December, any impending credit crunch could mean it'll be more difficult to apply for new credit cards.

Banks are already seeing an increase in credit card application rejections - with between 40 to 50% of applications now being turned down in an effort to reduce debt exposure.

According to a survey carried out by a leading financial website, the changes in consumer borrowing habits could indicate some worrying signs for the UK economy.

The survey quizzed consumers about debts amassed over the festive period, and whether they would consider switching credit cards as a result of this.

Results revealed that over 6 and a half million customers would not consider switching to 0% credit cards, despite the high interest rates on their current card.

Of those surveyed, 2.6 million said they planned on clearing up their debts, a further 8 percent of participants said they'd remain on their current deal.

The survey also revealed that borrowers aged between 25 and 34 were the group most likely to begin the year with a credit card transfer; with around 13 percent of those surveyed having plans to move debts in January.

There are a wide range of credit card deals now available on the market, with nearly three-quarters of those offering 0% deals on balance transfers, the average length of such deals being 10 months.

Credit Cards
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