Debit cards more popular than credit cards

Tue, 15 Jan 2008

According to recent reports in the financial services news, debit cards could be becoming more popular than credit cards, as people wise up to how much money is in their account and what they can afford to spend.

The credit crunch has had the effect of making people realise cheap credit isn’t permanent, and interest rates can go up as well as down. Credit card companies, although healthy currently following Christmas overspend, are predicted to face a tough period ahead.

Credit card companies have faced tough pressure in the last year to cut down on late fees and clean up their payment protection insurance . The bad publicity, coupled with increasing consumer awareness, is a bad equation for the credit card industry.

Debit cards often allow borrowers to live within their overdrafts without charging a high fee to do so. However, most debit cards do not offer cashback or loyalty schemes .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.