Loans loose out to credit cards
An increasing number of Brits are using credit cards as a means to bridge their short-term financial requirements according to a recent report.
The price comparison site Money Supermarket has discovered that an unusually high amount of people have ditched the option of sourcing a personal loan over recent months, favouring credit card borrowing instead. The site indicates that flexibility; ease of acquisition and a general feeling of reduced risk associated to card borrowing are the primary reasons for the rise in demand.
A spokesperson for the site commented that in some cases, and dependant upon the individual’s personal circumstances, credit cards can be the most suitable option for obtaining short to medium term financing. However, it is absolutely vital for consumers to ensure that the management of their repayments are fluid, as for many; the biggest problems arise when repayments are missed to which fees/charges are then incurred.
The report also compliments a recent BOE announcement relating to credit card usage, in which the bank revealed that accumulative spend had rose to almost ½ a billion since the beginning of the year.
