The attraction of interest-free deals is tempting people into buying things they cannot repay, research by the University of Bristol’s Personal Finance Research Centre revealed. Getting new credit cards can swiftly cause buyers to fall into huge amounts of debt because of a shift in the market where cardholders are targeted for 0 per cent interest deals. These can run for three years. There are around 30 million with debts totalling £56.9 billion of outstanding payments according to the Financial Conduct Authority (FCA), who are worried about the forceful selling of credit cards. This appears to be a growing problem in the UK, where there is 70 per cent of Europe’s credit card ownership. Research undertaken by the FCA is due to finish in January and will find out how easily people can switch their credit card provider and whether particular demographics are exploited to borrowing more than they should. Furthermore, the watchdog hopes to make sure customers are able to get the fairest deal possible and seeing if company’s terms and conditions are acceptable.
Posted on: Thu, 11 Dec 2014 09:24:45 +0000
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