Britons 'avoiding credit card debt' - Credit cards - News - Moneyfacts


Britons 'avoiding credit card debt'

Britons 'avoiding credit card debt'

Category: Credit cards

Updated: 18/12/2008
First Published: 18/12/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nearly half of Britons believe they should avoid credit card debts, research has found.

A survey by Zurich revealed that 45 per cent consider being free of these and overdrafts as "very important".

It came as the insurer urged consumers to seek independent financial advice in order to avoid falling into difficulty, as only eight per cent of people were shown to have income protection cover.

Zurich noted that the remainder of consumers could struggle should they become unable to work.

"An independent financial adviser can help to alleviate some of the stress and worry in making short and long-term financial plans," said business development director Tony Solomon.

Many unsecured loans holders take out payment protection insurance in order to prepare for the possibility that they could become unable to meet repayments.

The Competition Commission recently called for changes to be made to the practice of selling these policies, as it found that some consumers had been treated unfairly.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…

It’s looking to be a credit Christmas

We are now less than 70 days away from Christmas, and with 70% of people admitting they haven’t started saving yet, millions will be needing to play catch-up - and plenty planning to turn to credit for some Christmas spending relief.

Can no credit score be as damaging as a bad one?

Debt is becoming an increasing problem, which is why those who have no credit commitments often feel pretty smug about it. However, while not relying on credit is admirable, having no credit score can actually be just as damaging as having a bad one.