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Newsletter

Credit card trend 'could be returning'

By Sarah Engle, Mon 2 Aug 2010 - Published in Credit Cards

The recent increase in credit card lending could show that the UK's consumers are returning to bad habits, it has been suggested.

According to the latest Bank of England figures, credit card lending rose by £100 million in the UK during June, while overall consumer credit dropped by the same amount.

Commenting on the report, Credit Action director Chris Tapp said: "Using a credit card to make purchases has become so much a part of their everyday lives that they are dependent on it to get by. That is massively worrying because it is not sustainable for the economy or for individuals."

He also claimed that the recent rise in the use of the products could be the start of a new trend for people to be willing to spend more on their credit cards and suggested it could lead to more consumers living beyond their means.

Mr Tapp added that people should develop discipline and budgeting skills to prevent them needing to rely on credit cards and other loans to fund their spending.