Finance and Credit Professional

Britons are increasingly looking to borrow money, recently published research shows.

In a study carried out by MoneyExpert, it was revealed that more than three-quarters (78 per cent) of people have at least one credit card. Just over a quarter (28 per cent) of adults have one card, with 24 per cent owning two. Meanwhile, three out of 100 people questioned say they have five cards, with an additional 1.8 million people claiming to have more than this amount. The price comparison website suggested many consumers have a number of credit cards due to running up large debts or attempting to transfer balances across accounts.

Meanwhile, citing the most recent figures from the British Bankers' Association, MoneyExpert revealed that some 30.4 billion pounds is owed via the form of borrowing.

Furthermore, problems with repaying money owed across a variety of credit cards may extend to difficulties in meeting other borrowing commitments such as loans, overdrafts and store cards. In addition, people may discover that they struggle to make payments on other financial demands, for example utility bills and transport costs.

It was also revealed that 28 per cent of consumers applied for more credit cards over the course of 2007. While the majority of such borrowers were looking to get one more, just over a quarter of these people plan to get two or three borrowing products.

Additionally, the survey indicated that middle-aged people are likely to have the most credit cards. Some seven per cent of Britons in this age group state that they have more than five cards. Meanwhile, seven per cent of Londoners have over five plastic cards. However, among those living in Scotland this proportion falls to one per cent.

Commenting on the figures, Sean Gardner, chief executive of MoneyExpert, said: "The credit crunch hasn't finished the British love affair with credit cards yet, with millions of us still holding five or more cards. That is entirely healthy if people are swapping debts from one card to another taking advantage of zero per cent deals to ensure that that they pay as little interest as possible. However, there has to be real concern if people are using cards to keep their head above water. Anyone who is trying to juggle five or more credit cards and owes money on all of them is in real trouble."

He added that as the period when credit was usually easy to come by is "long gone", consumers should look to be proactive in getting to grips with their debts.

For those looking to get their money management under control, taking out a cheap debt consolidation loan might be advisable. Such a loan could help borrowers to converge a number of financial demands into a single low-cost monthly repayment. This might be of particular help to people struggling with multiple credit card debts.

In research conducted by MoneyExpert earlier this year, it was revealed that 5.9 million Britons changed credit card deals during the second half of last year in an attempt to reduce financial pressures. Some 17 per cent of 25 to 34-year-olds have switched provider so as to get to grips with their spending.

About The Author :

Tom Dawson writes for Essentially Home Loans. Our visitors can apply for secured loans online, for whatever reason with whatever credit history. Visit us today for the best rate loans available.

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