Credit card companies compete fiercely with other lenders to attract customers due to the sector being a “hugely profitable” area of financial services, according to one expert.
The savings manager at independent financial adviser (IFA) AWD Chase de Vere has said that this is because there are so many consumers willing to take on credit card debt.
Susan Hannums, savings manager for AWD Chase de Vere, said: “The competition is so high because there are so many people willing to take out the money.”
Ms Hannums added that credit card issuers will do “whatever they need to do to get the business”, which could result in numerous Britons taking on debt and turning their back on a debt free life.
She also said that the zero per cent credit card trend witnessed in recent years “backfired on them [credit card companies] badly”.
Last week, Michael Coogan, director general of the Council of Mortgage Lenders, told BBC Radio 4’s PM programme that credit card debt was causing some consumers trouble when it came to making mortgage payments.