UK credit card holders could add a further £253.6 billion pounds worth of debt, if they chose to spend up to the limit on their credit cards.
MoneySupermarket.com have these released figures which show the potential debt levels if Brits were to max out their credit cards. Britain already owes over £55.5 billion pounds of unsecured credit, but this is small change compared to the extra £198 billion which could be spent! Four million people have access to £20,000 or more in credit available.
Head of credit cards at the website, Steve Willey, said: “The fact people could blow a quarter of a trillion pounds is alarming. This is surely a big wake-up call to all providers that they must take into account a person’s total potential debt when they apply for credit cards.”
He wants banks to take action on the alarming amount of credit that is available, as in many countries banks will only give out another credit card on the condition that the borrower closes their current one. Willey added: “To have a further £198 billion available to spend on credit is crazy. To put it into context, that is more than the Government spends annually on health and education put together.”