The results of a recent study have shown that a rising number of people in the UK have become increasingly reliant on low interest credit cards over recent years, particularly over the past few years where more people have had to rely on their credit cards because of the difficult financial climate and the recession.
The report claims that low interest credit cards have become more common amongst consumers, as many are now relying on these cards. The research also showed that many consumers were using more than one credit card, as the increased reliance on credit cards over the past few years as resulted in many people having to get more than on card to enable them to fund their purchases.
Officials said that many people were now using their credit cards to make everyday purchases and even to pay bills, rent, and mortgage repayments, whereas in the past, prior to the financial crisis, many reserved their credit cards for emergencies or just to make one off or larger purchases.
Credit card debt amongst UK consumers has become an increasing problem, and for those that have not been able to get a low interest card the debt problem is even worse, as borrowers are paying a fortune for the credit that they use. Many of these borrowers with high interest cards have found it difficult to switch to a low rate card because the financial climate has made lenders far more stringent when it comes to lending restrictions.
One consumer paying an astonishing 49.9 percent APR on a Vanquis card said: “I have a balance of about two grand on my card and am desperate to switch to a low rate card. I just can’t find a lender willing to help though due to my past credit history.”