UK Credit card debt and fraud levels declining
Published: 13 February 2012
The amount of outstanding credit card debt accrued now accounts for less than four per cent of the total figure borrowed by UK consumers, according to industry watchdog, the UK Cards Association.
In its annual report the consumer body revealed 62 per cent of credit card holders attempt to pay off their balance in full each month, while an additional 9 per cent successfully do so most months.
With interest rates at incredibly low levels at present, a third of all credit card debt is not actually attracting interest whatsoever. This is due to the fact that borrowers are choosing to pay off their balance in full each month or some are able to borrow funds at 0% interest.
In other news that may put more consumer faith in the use of electronic cards, card fraud has also fallen considerably in the last decade. The study showed total card fraud losses in 2010 were at their lowest since the turn of the Millennium, with a further nine per cent decline in the first half of 2011.
Another way UK consumers are successfully avoiding the risk of card fraud is by using a prepaid MasterCard®. The
Pockit MasterCard® is one of the market leading prepaid cards on the market with the ability to control your spending without your account being linked to a personal bank account.
Melanie Johnson, chair of the UK Cards Association for the report, said: "Our 2012 Annual Report shows how we have made great strides in keeping cards safer from fraud and making changes that give customers more choice and control.
"We have also delivered some very tangible benefits: giving customer’s peace of mind that the highest debt on their credit card will always be paid off first; introducing a new annual credit card statement which every cardholder will receive from now on; and improving the transparency of charges when buying, or spending in, foreign currency."
Categories: Credit Cards, Savings & Banking, Loans & Debt, Prepaid Cards, Prepaid Mastercard