Debt & Bankruptcy Issues in the UK

Debit card use is rising and more borrowers are paying back their credit cards in full every month, according to APACS.

The number of people who are paying off their credit cards in full at the end of every month is rising, according to the UK payments association, APACS.

And debit card spending overall continued to rise, the association found in the results of its annual review.

The amount of money UK consumers spent on credit cards in 2005 is one per cent more than they did in 2004, APACS found.

Sandra Quinn, director of communications at APACS said: "Our figures show that UK credit cardholders are reining in their spending and concentrating on repayments - a trend which has continued throughout this year.

"In fact the latest figures released by the Bank of England in September 2006 show credit card repayments overtaking spending for the first time."

Lack of confidence about the growth of the economy could have contributed to lack of credit card spending, as well as higher repayments and the media, Ms Quinn added.
For the first time ever, in 2005 debit spending overtook cash spending with £89 billion being spent on debit cards.

In 2005, the debit card holders numbered 40.8 million, according to APACS.

Currently the Office of Fair Trading is investigating banks, after widespread complaints about late charges for overdrafts.