US Debt Worsen which Could Affect UK

Credit card debt has increased in the US a lot in the last few months. At the moment the performance of the industry is close to rock bottom since April. The analysts are saying that the trusts and banks are at least in a better position to handle these issues. There are signs showing that credit card borrowers are still going to struggle with their payments, but at least the companies are holding strong against this debt increase.

A lot of the US is suffering because they have fallen behind on their credit card payments, which means that once they are behind they can’t seem to get back on track. Right now there is more than 445 billion dollars in credit card balances, but these are backed by the banks, even U.S. Bank.

We all know that the credit card industry has been shaken up and that goes right down to the consumer. In fact a realistic look will tell anyone that it is bound to get worse before it gets better. There is weakening in the system on top of the ABS ratings.

So what does this mean for the UK residents? Well a lot of the banks who offer credit cards in the UK are tied to the banks in the US. Like Barclay card, American Express and others. When these banks begin to see a decline in their consumer base and a high debt that means they try to find other means of making their money. After all in December they had a charge of rate of 6.27 percent which has climbed since April.

If you hold a credit card right now in the UK you might want to read of any changes that come by mail or post to your credit card account. These changes could directly affect you. Added to that the UK is having a less significant issue than the US, but a lot of residents in the UK are suffering from income issues that directly translates into more debt on their credit cards, rather than being able to pay it off.

Back To Financial News June 2008

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US Debt Worsen which Could Affect UK