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PricewaterhouseCoopers addresses UK credit card debt problem

Wed, 11 Nov 2009

A new report from financial services firm PricewaterhouseCoopers (PwC) has suggested that both lenders and borrowers need to make sure they do not contribute to spiralling levels of credit card debt .

Despite credit card usage dropping by three per cent in the last 12 months, bad debts account for an increased amount of all borrowing in the sector, the research showed.

PwC has called for "innovation" within the industry to revolutionise the way credit cards are used, citing the increasing take up of contactless plastic as one option.

It indicated that interest rates and borrowing fees will see a sharp increase in the coming months.

Peter Harrison, credit cards expert at moneysupermarket.com, said: "Sustainability and transparency are key to the future of credit card lending in the UK. With the current model looking less and less viable each day, the industry must adapt to survive."

The Barclays website recently unveiled a 'vidcast' explaining how the technology allows consumers to pay for transactions of £10 or less without entering a pin number.
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