Credit Card Crisis for the UK

Consumer debt in Europe currently stands at £1.49tn and the IMF says that unemployment could lead to £104bn of this total having to be written off.

For the US this figure climbs to £162bn out of a total consumer debt of £1.16tn.

Data provider Datamonitor has also found statistics that suggest the UK is likely to face a steep increase in credit card defaults, following in the footsteps of US banks such as Citigroup, Bank of America, JP Morgan Chase and American Express.

This poses a particularly difficult problem for the now largest UK cards market player Lloyds Group.