Credit card debt to increase personal insolvency
Credit card debt has reached new heights, threatening to increase the already rising people entering into personal insolvency proceedings.
News of higher credit card debt comes just one month after the Department of Trade and industry published its quarterly insolvency figures. The DTI statistics show 7,903 people were declared bankrupt in the second quarter of 2002.
The survey by the British Bankers’ association shows credit card debt increased by 16% in the last year with the average card holder owing £1,400. In July 2001, the year-on-year increase in credit card debt was 18%.
Credit outstanding totalled £43.7bn at the end of July as UK consumers own 59 million cards altogether.