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News - 24 November 2003
Credit Card Debt forecast to Zoom to £10.8bn
Christmas shoppers are expected to put an average of £470 onto credit cards already groaning under the strain of the debt-fuelled consumer boom sounding warning bells at the Treasury.
Spending on cards is predicted to be higher than last year as the sum that the average household owes (on credit and store cards and personal loans) has reached £6,800. Many of the cards involved carry crippling rates of interest that make larger debts even more difficult to discharge. Total household debt including mortgages is expected to reach one trillion pounds sometime next year.
Twenty five percent of card-holders do not even know how much they owe on their cards and a general consensus suggests the consumer boom is unsustainable under these circumstances. Businesses need to be ready tackle the problems of a consumer slowdown. This is particularly the case for retailers and restaurateurs.
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