People with credit cards seem to be reining in their spending as worries over debts mount, one expert believes.
According to research conducted by Moneyextra.com while the average outstanding credit card balance increased in January - a result of Christmas spending - the jump was smaller than in previous years.
The average credit card balance was £2,168 in January 2008, compared to £2,901 for the same month in 2007, a fall of 25 per cent.
Robin Amlot of Moneyextra.com said: "There is a clear trend of falling outstanding credit card balances over the course of the last three years. The question is whether this actually reflects consumers clearing debts or merely a rescheduling of them."
He added that while it is now not as easy for so-called rate tarts to change credit cards, there has been a rise in secured lending raising the possibility that people are taking out consolidation loans instead.
Figures produced by Datamonitor show that, at the end of 2006, the average Briton held 1.4 credit cards.
News Side
January bills reflect credit card worries, expert says
Wed, 20 Feb 2008
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