More people skipping credit card repayments

7th February 2008

A new study has shown, that in the past six months around five million people have missed monthly payments on credit cards.

MoneyExpert.com showed that over 10 per cent of credit card users missed a payment over the period, two per cent more than in the previous 6 months.

This results in consumers spending a further £11 million on late payment fees over the six months.

"Debt worries have shot up the agenda as people start to count the cost of the UK's borrowing spree over the past few years," commented Sean Gardner, chief executive of the site.

"Missing a credit card payment comes at a financial cost of £12 a time but there are other factors to consider".

"The effect of a payment can last as long as three years on your credit file and it will be used by firms to decide whether they're going to lend you cash and what they're going to charge."

The study showed that 9% of consumers from the North had missed payments compared to a higher percentage of 15% of consumers in London.

New statistics from the BBA (British Bankers' Association) showed that people spent slightly more on their credit cards in December than they did in the previous months.

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