Credit cards lure non-repayable spending, says University of Bristol study
The interest-free deals offered by credit cards lure people to indulge into unsustainable spending, according to the University of Bristol.
The interest-free deals offered by credit cards lure people to indulge into unsustainable spending, according to a study conducted by the University of Bristol’s Personal Finance Research Centre.
According to the Financial Conduct Authority (FCA), credit card debts encompass around 30 million people amounting to £56.9bn ($89.4bn) of outstanding payments.
Forceful selling of credit cards with zero percent interest deals targeting cardholders trap a large amount of people to borrow on multiple cards rapidly escalating the debts out of control.
Mark Somerville, director at Trust Deed Scotland, a Scottish debt advisory service provider, said: “The sustained depression of wages in Scotland and the rest of the UK means the number of people either in serious debt or in danger of falling into it, remains at an all-time high.
“As tempting as short-term credit is, I would urge anyone in Scotland struggling with debt to seek professional help.”