Consumers Loose Confidence in Credit Card Companies
Have consumers lost confidence in credit card companies? According to research performed by YouGov, they have, with one in four Britons saying they plan to avoid spending money on their credit cards for the Christmas season.
What is the reason for the loss of confidence? The fact that banks needed help from Northern Rock after they suffered losses from the US sub-prime mortgage collapse.
Referring to research similar to YouGov’s recent report, James Falla, Director of Thomas Charles said: “The research that has been done clearly shows that people are thinking about how much they are spending and they are thinking about spending within their budget.”
However, he went on to say that: “I think that around this time of year it’s easy to almost make a resolution to do something, but it’s a very difficult time of year to do it - particularly when the natural instinct is to go out and spend more.”
With the plethora of reports indicating increases in personal debt, a sudden trend towards saving doesn’t look too promising. Thomas Charles’ research shows that approximately 15% of Britons are currently carry over £10,000 in debt.