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"Increased pressure" for those in credit card debt

02/07/2008

More credit card lenders are applying to take charges over borrowers` properties, putting more pressure on those in debt, an expert has said.

James Falla, managing director of debt consultancy Thomas Charles, has commented on a recent uSwitch.com report claiming 84 per cent of successful credit applicants were not asked to prove their income last year.

Mr Falla warned of credit card companies now securing debt against properties and applying to take charge of them if repayments are not made.

"What that will then mean is that people in debt difficulties may start seeing increased pressure in situations where they`re looking at repossessions and that kind of thing," he said.

This will mean "a longer term consequence" of the financial situation, with many people applying for additional credit cards to pay off the first, he added.

The report released by uSwitch.com last month stated 4.8 million people were given credit cards without being required to give proof of income. Around five per cent said they lied about their income to obtain additional credit.

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