Credit card debt and fraud has fallen
Credit card debt and fraud levels have fallen according to the UK Cards Association.
Outstanding debt on credit cards accounts for less than 4% of the total amount borrowed by UK consumers, the industry watchdog said. The annual report highlighted that 62% of credit card holders pay off their balance in full each month and a further 9% do so most months.
Brits are enjoying low interest rates at the moment as a third of credit card debt is not attracting interest at all. This is because it is either being paid off in full each month or a number of people are borrowing at 0% interest.
Card fraud has rapidly fallen over the last decade. The research found that total card fraud losses in 2010 were the lowest since 2000 and there was a 9% decline further in the first half of 2011. The government has invested in a specialist police squad, known as the Dedicated Cheque and Plastic Crime Unit to resolve fraud issues over the last few years.
Prepaid credit cards stop fraud
One way to reduce the likelihood of fraud could be to use a prepaid credit card. The Orange prepaid credit card allows you to control your spending and you don’t need a bank account to get one.
During 2010, a staggering 37 million adults used their credit card to shop online. Brits spent around £54 billion worth of goods with 80% of all spending done online.
“Our 2012 Annual Report shows how we have made great strides in keeping cards safer from fraud and making changes that give customers more choice and control,” said Melanie Johnson, Chair of The UK Cards Association on the report.
“We have also delivered some very tangible benefits: giving customer’s peace of mind that the highest debt on their credit card will always be paid off first; introducing a new annual credit card statement which every cardholder will receive from now on; and improving the transparency of charges when buying, or spending in, foreign currency.”