UK is Europe's credit card capital
BRITONS are 'addicted' to plastic and run up more than 60% of all credit card purchases in Europe. Some 67m cards were circulating in the UK last year, accounting for more than half of those issued across 16 countries on the Continent, a survey reveals.
It points to the £1 trillion debt mountain piled up by families here, leaving many in severe financial difficulties.
However, the credit spree is set to continue, according to retail analyst Datamonitor. It predicts that by 2008 there will be almost 93m credit cards in use in the UK, an increase of almost 40% on 2003.
Total transactions will soar by more than 42% to £154bn, says the report.
Financial services analyst Kieran Hines said: 'The UK is the most developed card market in Europe, and second only to the US internationally. Consumers here have grown extremely comfortable in making payments by plastic card in recent years.
'This is shown in the growing number of cards in circulation relative to our European neighbours, who are not so keen on card-based credit.' While many on the Continent do hold cards with a pay-later function, bills have to be settled in full at the end of each month.
Hines said Europeans take on debt in a different-way. In Germany, many consumers have access to overdraft facilities up to three times their monthly salaries.
They are also more likely to take up the offer of instalment finance when buying household items such as furniture and refrigerators.
In France, bank-issued credit cards are rare, but consumers are happy to borrow on store cards. In Britain, outstanding debt on credit cards has rocketed to more than £56bn.
