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Credit crunch making borrowing more expensive, says expert
Global economic conditions mean UK consumers are finding it increasingly difficult to obtain credit - and they are finding it especially hard to get credit cards with low interest rates, a financial expert has said.
Chris Tapp of financial charity Credit Action said that although credit cards are "not about to go away", the worldwide economic downturn meant that borrowing was "not was widely available as it was 12 months ago".
Recent research from Moneyexpert.com found that 3.2 million Britons own five or more credit cards - and a further 2.8 million applied for more plastic last year.
However, Mr Tapp added, as the credit crunch bites lenders, "all forms" of credit have become increasingly scarce in recent months and where consumers have secured borrowing, it has come with a higher rate of interest attached to repayments.
"Because of the credit crunch people are finding it harder to come by credit cards and certainly harder to come by credit cards at low rates," he commented.
According to Unbiased.co.uk, Britons on average have to work 70 days to earn enough money to service the interest on their credit card and loan debts.