Do we need help to control our credit card spending?

The UK government has pledged to give new powers to the likes of the Office of Fair Trading in relation to so-called excessive credit card interest rates. However, while many people have welcomed the move by the government do we really need help in controlling our credit card spending?

The truth is that credit card spending has spiraled out of control over the last decade in the UK with personal debt, including credit card debt, now in the region of £1.3 trillion. Unfortunately, while there have been instances of credit card companies increasing interest rates to unsustainable levels the truth is that without credit card debt there would be no interest charges to pay.

There are certain circumstances where credit cards are very useful but ultimately if we allow your credit card balance to get out of control then who do we have to blame but ourselves?

The credit card industry in the UK is one of the most developed and most mature markets in the world which is why we see the likes of US giants and other worldwide companies with great exposure in the market. This will continue so long as UK consumers continue to rack up record credit card debt.

Source: FinancialAdvice.co.uk