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

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.