Monday, 23 August 2010

New 'debt boom' fears as banks offer 'more generous credit card deals'

Despite warnings of a potential double dip recession, banks are presenting struggling customers with offers of cheaper debt than they made available before the 2007 economic crash.

Experts warned that Britain could face a new “credit card boom” leaving families heavily in debt as they borrow to make ends meet and struggle to pay off the money.

It comes amid concerns of future job losses, particulary as the Coalition government’s spending cuts are due to take effect.

The research, from two price comparison websites, found some banks were offering credit cards with attractive interest free rates for an introductory period of an average of 12.2 months.

This was longer than during the peak of the last credit boom but once they end leave families with high interest repayments.

While the improved rates are good in the short term, it can be costly for those who still have debts when introductory offers run out. Read more

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