Higher bills fuelling rise in credit card debt, retailer claims
Higher bills fuelling rise in credit card debt, retailer claims
Monday 2nd June 2008
Since the start of the year, energy bills have gone up by an average of 15 per cent, while mortgage and loan repayments are also increasing.
Rob Templeman, chief executive of the retailer, said that in response consumers are seeking to negotiate their higher living costs by using store cards for purchases and credit cards to pay their bills.
He said: "We are seeing a lot more cash purchase and the number of store card transactions is moving up.
"There is a definite trend away from credit cards, and my suspicion is customers are using them to pay their everyday bills."
According to figures cited in the report, interest rates on some store cards can be as high as 30.9 per cent - making them among the most expensive ways to borrow.
The rise in living costs has already fuelled a 4.3 per cent increase in the number of people opting for individual voluntary arrangements (IVAs) during the first three months of this year.
Debt1, official website of Byrom & Keeley - Experts in Debt Management
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