Monday 10th of January 2011
People who are already struggling with their mounting debt problems and are considering asking individual voluntary arrangement questions may find proposed changes to credit card debt will not be enough to help them in their predicament.
David Rodger, managing director of the Debt Advice Foundation, said the moves - which include more communication between credit card companies and users - need to go further to more effectively address the issue.
The industry figure noted: "Credit card debt, one of the most expensive forms of borrowing, was never meant to be used for the levels of borrowing we see today."
He added the amount of money owed on plastic makes the products comparable to personal loans.
Credit card debt is one of the costliest methods of lending, Mr Rodger pointed out.
Recent research from Santander Credit Cards revealed nearly three million people are to shift £2.8 billion on to new cards in 2011.
BY Hayley Jones
