Credit card debt overstated and largely a myth according to new report

The popular belief that credit card debt is spiralling out of control is "largely a myth", a new survey concludes.

According to the results of 48,000 interviews by Mori, the whole issue has been "hyped" and "overstated".

The findings of Mori reveal that the majority of credit card holders in the UK use their credit cards wisely and have sufficient assets to service credit card debt — even if the economic situation deteriorates.

Official figures suggest there are some 61 million cards with an average household debt of £2100 — with consumers spending over £130 billion on their cards in 2003 resulting in £50 billion of arrears. However, MORI Market Dynamics believe these official figures are often misunderstood and generally misinterpreted.

Mori found that almost seven in 10 card users were classed as "convenient controllers" who use their cards sensibly and pay off their balance in full on a monthly basis.

In contrast, it said just 5% of card users should be classed as "spiralling debtors" who have significant debts relative to their income.