Consumers struggle to service credit card debt
19 February 2010 17:05:54
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| Bad debts rise at Barclaycard. |
Last year's results for Britain's biggest credit card provider show the company's bad debts have risen to £1.8bn, which is up by two-thirds on levels seen in 2008.
However, the default rate was found to have slowed in the second half of the year, hinting that consumers may be starting to get to grips with their finances.
According to Barclaycard, the diminishing ability to meet debt repayments is a direct consequence of the economic downturn, although the figures also reflect the acquisition of Goldfish credit cards in 2008.
In an article for the Evening Standard on Wednesday (February 17th), columnist Melanie McDonagh noted that while the government had attempted to put pressure on banks to increase mortgage and business lending, very little has been done to help credit card borrowers.
She said a lack of action meant credit card debtors can now be "squeezed like lemons" by providers.
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