Government plan to curb credit card debt

18 March 2009

The Government is planning to impose restrictions on the credit card industry in an attempt to reduce people`s temptation to get into debt, the BBC reports.

Government ministers want to ban credit card companies from sending out unsolicited credit card cheques to consumers, as well as stopping them from raising credit limits without the customer requesting it.

Consumer Affairs Minister Gareth Thomas said the Government were "concerned that people may be tempted to borrow irresponsibly" if credit card companies operated in this way.

The total outstanding balance on Britain`s credit cards is currently £53bn, according to the BBC.

A spokesperson for debt management company Gregory Pennington said: "Credit cards can be very useful, provided they are used responsibly, but if people spend on their cards without considering how they can pay the money back, there is a very real risk of future debt problems."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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