Brits continue to use good and bad credit credit cards to meet financial needs, according to the latest data from the Bank of England. The credit card lending level was unchanged during December 2011 and was 2.4 higher than the December 2010 figure.
Whether their credit is good or bad, Brits seem to consider credit cards to be popular financial management tools.
Credit cards for bad credit can help repair the credit score. By using these responsibly, consumers show prospective lenders that they can manage their finances. Cardholders should slowly build their credit history by spending less than they earn and paying the credit card balance in full each month, reducing the amount of interest charged.
Paying more than the monthly minimum indicates a stable financial situation. Carrying this practice over to outgoings like the mortgage and car payment makes the individual look even better.
In this time of economic uncertainty, many Brits are trying to create a secure financial situation to keep themselves out of debt.
The Bank of England also reported that the UK is still a nation of savers. A study recently commissioned by Lloyds indicates that the proportion of disposable income put toward savings has been dropping during the past ten years.
However, it managed to recover to a level of seven percent during the recent recession. Even with the cost of living increase greater than most savings account interest rates, UK consumers have made savings a priority.
Though this is commendable, UK savings rates are much lower than those of other countries. The typical UK household saves and invests £5,000, on average. German households save more than £8,600 and households in urban China save nearly half of their disposable income, an equivalent of £19,300.
To keep pace, Brits may want to limit their credit card spending and do some more saving.