Over 3 million Britons juggling 5 or more credit cards
In spite of concerns about the credit squeeze, research from MoneyExpert.com has established that over 3 million Britons are juggling 5 or more credit cards.
The research discovered that 3.2 million have 5 or more cards with adults between the age of 35 and 44 being the worst offenders.
This age group tend to have young children and when questioned, said their finances would reach ‘breaking point’ if one parent had to give up work to look after their family.
The price comparison website said many Britons are still spending beyond their means and accumulating debts. Furthermore, in the last 12 months, a third of Britons have applied for another card.
MoneyExpert.com has warned that many consumers are now in ‘real financial trouble’ trying to keep up with mortgage repayments or to make the minimum payments on other debts.
Sean Gardner, MoneyExpert.com’s chief executive, said too many borrowers are using their credit cards in the wrong way. There has to be real concern if people are using cards to keep their head above water.
It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% deals to ensure that they pay as little interest as possible, added Mr Gardener, however, anyone trying juggle 5 or more credit cards and owes money on all of them is in real trouble.
Consumes are being urged to control their debts after indications that major banks are claming down on lending. Last month, internet bank Egg, withdrew the credit cards belonging to 161,000 customers who had spotless credit files.
Research shows that Barclaycard has rejected 50% of applications for new loans in the last few months.