Credit cards not massively affected by the economy

Wed, 16 Apr 2008

People who are good with their money should find that their credit card use is not affected by the economic downturn, one expert believes.

Samantha Owens, head of personal finance at MoneyFacts, explains that as long as people are sensible, there is no reason to stop using credit cards .

Ms Owens said: "Credit cards offer a lot of protection with making purchases, so if you're the kind of person who's been managing their money perfectly well up until now then there's no reason why you shouldn't continue [to use them]."

However, she warned that people who leave money on their credit cards and only make the minimum payment each month risk getting into financial difficulty.

Ms Owens added that it is now not as easy to transfer a balance from one credit card to another and this could mean that people who are used to doing this face an increase in the amount of interest they are charged.

According to a recent survey by Co-operative Financial Services eight out of ten people worry about the level of debt they have accrued through things such as credit cards.
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