Credit card firms join forces on debt
(02 December 2005)

Four leading credit card providers have joined a forces in a scheme aimed at identifying customers who are, or may be at risk of, falling into debt and associated financial difficulties.

Barclaycard, the Co-operative Bank, Egg and Abbey will, through credit referencing agencies, share data such as how much customers are spending on their cards, how much is being repaid each month and whether individuals' credit limits have been increased or decreased.

The move has been spurred on by the increasing number of people taking out a credit card in order to temporarily pay off debts on another – with such occurrences having led to steeper debts and even suicides in some cases.

This caution against taking out multiple credit cards strengthens the case for a payday loan. A cash advance of between £80 and £1,000 won't solve all of your debt problems but it could remove the temptation to take out another credit card, or similar long-term loan solution, and mount up a further pile of debts.

Gary Hoffman, Chief Executive at Barclaycard, said: "This move will improve our ability to help customers by making better lending decisions. Whether it’s a customer applying for a card or asking for an increased credit limit, the better the information we have access to, the better chance we have of getting the decision right."

Paying back up to a quarter of what you spend, you know where you are with a short term loan. The less you allow your long-term debts to bog you down now, the better your credit rating prospects are likely to be in the future.



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