Most 'use credit cards sensibly'
Published On 31 May 2007
While the majority of people use credit cards sensibly, too many still end up in financial trouble by only opting to pay off the minimum monthly repayments, an industry expert has warned.A spokesperson for the Consumer Credit Counselling Service (CCCS), Frances Walker, explained that a person who used a credit card to make a £2,000 purchase and then only paid the minimum monthly amount back would take approximately 20 years to clear their debt.
"There are of course around 50 per cent of people who pay their cards off in full every month," Mr Walker added. "The majority of people do use credit wisely."
However, he added that "between four and eight per cent of people who take out credit will get into difficulties, which is a small proportion, but obviously a huge number of people".
Mr Walker explained that "Credit is obviously here to stay," meaning that consumers themselves need to become more responsible with their borrowing habits.
"People have got to learn how to use credit properly," he concluded.
Recent figures from the British Bankers' Association (BBA) showed that credit card lending fell by £100 million in April.
