UK Tops The Charts For Credit Cards In Europe
Research carried out by independent market analyst Datamonitor has revealed that British consumers take the lead when it comes to carrying plastic in Western Europe.
The average credit card holder in Britain is now in possession of 2.8 cards, treble the amount carried by our French neighbours. This figure is expected to exceed 3 cards by the end of 2011 as the Brits maintain their first place position.
Norway is considered to hold the second highest number of credit cards with an average of 2.3 cards per adult, while Sweden, Denmark, Ireland, Italy and Finland have a modest average of 1.2.
On the flip side, Switzerland, Belgium, Germany and Austria have a mere credit card average of just 0.1.
This report clearly shows a substantial difference in consumer habits across Western Europe. Financial services analyst Andrew Fabricius and author of the report said,
"In the UK, consumers use debit cards for day-to-day spending much like their European counterparts, but are increasingly using credit cards as borrowing tools, applying for new credit cards to transfer an outstanding balance and to take advantage of interest-free offers."
He added, "In most other countries, consumers do not view credit cards as a borrowing tool and, as a result, they are not so popular."
However, due to the recent credit crunch issues which have led to a slowdown in the UK economy and property markets, the rise in inflation has in turn provoked a decline in consumer confidence. Therefore credit card borrowing has likewise experienced a similar slowdown among British card holders. Consumers are now thinking twice before they increase their outstanding balances and concentrating on paying more off each month.
Consequently, the UK credit card market is predicted to grow at a much lower annual rate of just 0.2%, whereas those countries with underdeveloped credit card markets will see significant growth.
Published on February 19, 2008
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