Credit card repayments slump

Those with a credit card are paying back less of the balance owed now than at any time during the last two years, it has been revealed.

In addition, the amount of people using their credit cards to get cash advances has also reached its highest ever level.

FICO, a provider of analytics and decision management technology, conducted the research on ‘classic’ credit card accounts established over the last five years.

Mike Gordon, FICO’s vice president and managing director for Europe, the Middle East and Africa, said: “The combination of flat spending on classic cards with lower payment percentages and higher cash usage indicates increasing strain on consumers’ wallets,” reports Think Money.

Overall, as a country, we owed £56.9 billion on our credit cards in September and have £208.6 billion in unsecured debt – which means that credit card borrowing accounts for almost 30 per cent of all unsecured debt.

Categories; Current UK Economy, Credit Card Lifestyle,