Credit card dip due to debt consolidation?
20/02/2007Last year saw a fall in the average amount of UK credit card loans.co.uk/debt-calculator.aspx">debt, according to a Euromonitor study reported in the Telegraph.
The fall in average credit card spending from £1,978 in 2005 to £1,900 last year may have been in part due to consumers consolidating their debts into more manageable payments.
In Britain we remain more indebted than our European cousins, still approaching double the annual spending compared with the EU average.
"UK consumers are now less willing to get into debt on credit cards with high APRs, turning instead to longer-term secured and unsecured loans which offer better value for money," the research firm stated in the Telegraph.
"Credit card companies are responding to this by implementing savvy marketing strategies. The industry is also coming round to the view that it is cheaper to retain a customer than acquire a new one," added Euromonitor.
A longer-term personal loan can be one of the best ways to bring your debt under control, offering both a lower monthly repayment and a far lower rate of interest than a credit card.
 © Adfero Ltd
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