Credit cards hoarded by Brits
A new study has found that there are 38 million credit cards in the UK which are no longer used by their owners.
British people are not getting rid of credit cards they are no longer using, according to a new report from financial advice website uSwitch.com.The research claims that 16.3 million consumers in the UK currently have 38 million credit cards between them which they have stopped using but not cancelled, accounting for a collective credit limit of £200 billion.
Out of this number of people, eight per cent have up to four credit cards that they have not cut up or closed, while seven per cent have five or six such products.
Louise Bond, personal finance expert at uSwitch.com, commented on these findings: "Hoarding as many as six unused credit card accounts is excessive. It is a problem for both the credit card industry and individuals."
Other results from the survey show that the recession and its effects - unemployment and tightening of budgets - are forcing people to hold on to the credit cards in order to provide a safety net in case they lose their income or need help to pay a large bill.
Some 3.32 million applications for credit cards were rejected last year and those who have managed to secure one of the products are having trouble letting them go, even if they aren't currently using the money.
Ms Bond added: "Overall it seems people are bombarded with conflicting opinions as to whether or not they should close credit card accounts that they no longer use.
"In times of such financial turbulence, it's hardly surprising that people don't want to let go of what they consider to be a financial lifeline."
Online bank Egg recently announced the launch of a new credit card which comes with an interest rate of 8.9 per cent and encourages customers to spend money by offering rewards for using the plastic.
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