One debt management group has recently expressed concern that the increase in the availability of certain credit cards could lead to a rise in the level of credit card debt in the UK.
Over the past couple of years getting a credit card or any other form of finance has become a difficult task for many consumers in the UK, with the effects of the global financial meltdown coupled with the recession making it difficult if not impossible for some people to get their hands on a credit card, no matter how desperately they might have needed one.
However, a debt management group has recently expressed concern that there has been an increase in the availability of certain credit cards and that rules over credit card lending have become more relaxed, the combination of which could result in the level of credit card debt in the UK rising, as more and more people flock to take advantage of this increased availability.
Figures indicate that just one year ago there were only two credit cards available that offered interest free credit for ten months or more on purchases. However, this is said to have increased by around four hundred and fifty percent, with eleven cards now available that offer interest free credit on purchases for at least ten months.
Officials have said, however, that these cards could prove useful for those that use them properly, as they could provide more flexibility and convenience when it comes to repaying the balance without having to pay hefty interest fees. An official from the debt management firm said: “If used properly, the 0% purchase deals for extended months is still a viable option for many consumers. However, it is important to stay within your limits and pay off the difference by the final month, otherwise you could be in for an unpleasant surprise in the form of increased interest rates.”
Source - PRWeb