According to recent research, British consumers are more susceptible to debt than their European counterparts.
As a result of the high debts carried by UK credit card holders, they experience more adverse effects from economic downturns.
The majority of debt stems from credit card use and no other country in the European Union carries debts as high as the United Kingdom.
The Global Ratings Agency found that there was a vast difference in debt ratio between European and British consumers.
The research results found that the average credit card holder in the UK used their card 224 times a year in comparison to 154 times a year for credit card holders in France, 64 times a year in Spain, and the lowest being 13 times a year in Greece.
Mainstream banks offer a diversity of products to retain their customers and it appears that credit cards are one of their main products.
Analyst for the research company Moody Lisa Macedo stated: “Credit cards are used widely across the UK which means that there is going to be a variety of consumers with access to them meaning more risk.”
The majority of European countries operate in a culture of frugality and saving, countries such as Germany and France have a particularly low debt ratio.
Britain operates under a buy now pay later culture which has financed the credit card industry. There are approximately 50 million cards in circulation in the United Kingdom.
Unsecured loans are also a popular borrowing source, and there has been a growth in this area over recent years.
According to research conducted by Sainsbury’s Bank, it is likely that demand for credit will continue as inflation continues to rise and household living becomes more expensive.