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Spending on credit cards has 'slowed'

Spending on credit cards has 'slowed'

• Pay off those credit cards with a remortgage or loan

 

The amount of spending on credit cards in the UK has slowed over the past year, it has been suggested.

Chris Tapp, director of financial education charity Credit Action, has noted that while it is still a popular way to borrow money, perhaps more so than loans, shoppers are using plastic less to pay for goods.

"People are starting to borrow slightly less than they once did on credit cards and banks are starting to tighten up how much and who they lend to," he said.

Mr Tapp remarked that Egg had made the most dramatic decision to cut down on lending by cancelling some of its customers accounts.

He described the rise in borrowing in recent years on credit cards as "astronomical".

Fairinvestment.co.uk revealed earlier this week that many credit cards holders are avoiding paying interest by paying off the balance each month in full.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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