Consumers already owe a "disturbing" £55.6 billion on credit cards, but this could rise by a further £102 billion if people max out their plastic, new research shows.
According to Steve Willey, head of credit cards at Moneysupermarket.com, this situation has been caused as providers have not been taking into account people's total potential debt when they apply.
He said: "Some providers are acting responsibly by refusing applications due to a person's total credit limit on all their cards, but others are still assessing things as though that person doesn't have another card."
It might be worthwhile banks and regulators imposing a rule whereby people have to cancel all other cards before they are given a new one, he suggested.
People must use any credit they have available to them wisely so they do not get into trouble, Mr Willey added.
Meanwhile, Capital One has launched a new credit card that offers an interest rate of 8.5 per cent on balance transfers .
News Side
Credit card debt disturbing, expert claims
Wed, 16 Jul 2008
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