Credit crunch shouldn’t affect responsible credit card users, claims expert

Credit card users who have not had difficulty in managing their finances in the past can continue using their cards despite the current economic downturn

Financial information provider Moneyfacts said that so long as people have a sensible approach to their finances, they could continue to take out personal loans, however the company also warned that transferring debts to new credit cards is becoming more difficult to do as lenders tighten their criteria.

Samantha Owens, head of personal finance at Moneyfacts, commented: “We haven’t seen the rates rising on credit cards like we have across other products just because the margins on them are so big already,” but the company calculated that they nevertheless went up by 0.2 per cent over the past year.

A Nationwide report released this month found that consumer confidence was at its lowest level since records began and a survey by YouGov revealed that six per cent of people have taken time off work as a result of worrying about their debts.

Ms Owens advises consumers to consider various options for managing their finances, including taking out a structured personal loan.

Tags: report, responsible credit card, finance, company, difficulty, YouGov