UK credit card market to see bad debt increase by the end of 2010 – report

Monday 9 November 2009 10:05 CET | News

Credit card debt levels remain high in the UK, despite the fact that the current economic crisis has prompted consumers to lower their borrowing rates on cards, a recent report quoted by the BBC indicates.

According to accountancy firm PricewaterhouseCoopers (PwC), by the end of 2010 bad credit card debt levels in the UK could amount to 9 percent of all outstanding balances, compared to 6 percent at present. The same source indicates that current credit card borrowing levels in the UK amount to around GBP 64 billion, while the number of credit cards in circulation in Britain has dropped by 8 percent.

The PwC survey also indicates that borrowing rates on cards are likely to go up, while annual fees are expected to turn mainstream on the UK credit card market, as customers will be forced to pay for owning credit cards. Currently, UK households carry an average estimate of GBP 60,000 in debt, of which GBP 10,000 represents unsecured debt.

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Keywords: credit card debt, bad debt, borrowing rate, outstanding balance, redit card borrowing level
Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce