Credit card debt an issue for 2010?

Those looking to take out credit cards in the coming year could find it hard to be accepted, as regulatory changes come into force and lenders continue to sustain losses as a result of those who are unable to clear their debts.

This is according to credit cards expert Peter Harrison of moneysupermarket.com, who noted that providers are to be faced with many challenges in 2010.

He went on to say that this will have a knock-on effect for consumers, adding: “There’s no doubt only those with excellent credit histories will qualify for the leading credit cards next year.”

In addition, Mr Harrison also outlined the possibility that the next 12 months could see a “widespread return of annual and monthly fees across the industry”.

Consumers may like to react to this eventuality by ridding themselves of a few of their credit cards, particularly as it was recently revealed that it can take years to pay off debts accrued on plastic.

This is Money’s Simon Moon noted that, when just minimum amounts are paid, it can take 15 years to be free of debt, if the money owed totals £2,000.

By Sarah Adie