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United Kingdom Holds the Cards
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(18-02-08) - Britons are the card sharks of Europe, carrying more plastic in their wallets than the likes of Austria, Sweden and France added together. writes Dan Drage dan.drage@consumerchoices.co.uk |
Statistics compiled by independent market analyst Datamonitor show that Brits carry, on average, 2.8 credit or debit cards per person. This figure is expected to reach 3.0 by 2011. Second on the list was Norway with 2.3 cards, with Finland, Ireland and Italy tied in third spot.
Britons also carry the most credit cards, at an average of 1.4 per person, twice as many as the runner-up in this category (Norway). People from Switzerland, Belgium, Germany, Greece, Austria, Sweden, Denmark and France carry, on average, just 0.1 credit cards each.
Andrew Fabricius, author of this report, was keen to highlight Briton’s use of credit cards as a loans tool:
‘In the UK, consumers use debit cards for everyday spending much like their European counterparts, but are increasingly using credit cards as borrowing tools, applying for new credit cards to transfer an outstanding balance and to take advantage of interest-free offers. In most other countries, consumers do not view credit cards as a borrowing tool.’
The report also indicated a slowdown in credit card borrowing among Britons. In terms of total card numbers, the UK credit card market is predicted to grow at an average annual rate of just 0.2 % in 2008. By comparison, the German credit card market is expected to expand by 26%.
Chris Eagle, Commercial Manager at CreditChoices, expounds the feeling that taking out credit cards and using them as loans is a recipe for disaster:
‘The temptation to load up a credit card and repay only the minimum amount each month is strong, and the interest rate on cards is more often than not set higher than that of a standard loan. Using credit cards as loans is a high risk strategy, and certainly not one for the faint hearted. For those embarking on such a project I have one key word: discipline.’
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