UK consumers trapped in credit card debt for longer than thought

Bank of England and financial watchdog found 89% of card debt was held by consumers also in debt two years ago

British consumers are trapped by credit card debt for longer than previously thought, according to a study by officials at the Bank of England and the City regulator, as unsecured borrowing reaches levels unseen since the financial crisis.

Analysis by the Bank and the Financial Conduct Authority showed it was common for people to remain in debt even after paying off one of their credit cards, as they shift debts from one lender to another. Previously, Threadneedle Street had believed that credit cards were paid off more quickly, particularly in relation to mortgages.

Continue reading…

Leave a Reply

Read the original at Economics | The Guardian.