Paying with Plastic

A Study of Credit and Debt

Karen Rowlingson and Elaine Kempson

This study examines how people use their cards and the reasons for credit card default - and its results do much to dispel the popular image of a credit card defaulter as a young, irresponsible spender. For example:

• credit cards are used most by people in their 30s and 40s, especially if they have children.
• while there are some people who overspend, the main reason for default was found to be loss of income, often through small business failure.
• there are a number of credit card holders who default because they simply misunderstood the system of payment, or are just very disorganised.
• there is no evidence that credit card companies were issuing cards to people who could not afford to use them.
• customers who default are surprised by the relatively sympathetic approach adopted by the credit card company.

£9.95 paperback ISBN 0 85374 584 6
1994 80 pages 216 x 135mm
Report number 750