30 June 2006
The UK has rapidly developed into a "plastic society" since the launch if credit cards in the country 40 years ago, according to a personal finance expert.
Nick White, from price comparison and switching website uSwitch.com, said that there were now over 200 credit cards available and the industry is booming.
People in the UK currently owe £56 billion on credit cards compared to £14 billion just 10 years ago, with the average person now holding 2.4 credit cards.
"The combined effects of greater and easier access to credit, along with the perceived flexibility and security that plastic offers, have resulted in the emergence of plastic cards as our preferred method of payment," he said.
The acceptance of credit cards has been brought about by an attitude change towards debt, which brings its own dangers, Mr White warned.
"We seem to be in the grip of a "spend now, pay later" culture which has fuelled the growth of personal debt to unprecedented levels," he added.
"This appetite for credit has been encouraged by the banks, who have barely paid lip service to income and affordability checking for all but those with the worst credit records.
"This cavalier approach to lending has recently started to backfire on the major lenders, with provisions for bad debt reaching £3.6 billion in 2005."
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