Christmas Expenditure – Affected due to Credit Changes

Posted 2007-11-26

Accountants at PricewaterhouseCoopers (PwC) have provided proof that consumer credit has tightened in the UK.

Furthermore in its Precious Plastic 2008 report, the company claims that due to an increase in the number of consumers unable to repay their credit card payments, credit card providers are not receiving too much of profits. In fact their bearing the brunt of the fierce competition in this sector.

PwC states that credit companies loose almost 4 billion pounds due to this, which leads to numerous credit card applications not being accepted this holiday season.

In addition, UK’s debt problem does not seem to get any better. PwC statistics illustrate that the average British adult’s payment in unsecured loan has doubled since the year 2000. They now owe almost 33,000 pounds.

“In reaction to this rise in consumer debt, banks are making it more difficult to obtain a credit card”,  says Richard Thompson of PwC

In this festive season and following that as well, it’s not going to be an easy task to get a credit card.

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