PricewaterhouseCoopers sites credit changes in store for Christmas

Posted 2007-11-26

In its Precious Plastic 2008 report, PricewaterhouseCoopers (PwC) states that credit card providers are realizing declines in profits due to the increasing number of consumers being unable to make repayments, as well as increased competition in the saturated business sector.

Richard Thompson of PwC recently stated, “Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies. Many consumers will find it increasingly difficult to obtain credit in the run-up to Christmas.”

Nearly £4 billion has already been lost by the credit companies as a result, according to PwC, leading to potentially “thousands” of consumer plastic hopefuls being flatly rejected this upcoming holiday season.

Moreover, the UK’s debt problem is deteriorating, with PwC figures reflecting that the average British adult now owes £33,000 in unsecured loans – which has doubled since the year 2000’s figure.

At the pace Britons are piling on debt, the year 2014 is looking mighty grim. Perhaps it’s time to put Santa on sugar-free cookies, and tighten that big, wide black belt – before it gets laid across our backsides.

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