As total borrowing nears £1.1trillion and card holders owe a record £55.68billion, should the credit card industry be curbed? Helen Gabriel reports... On the 19th of every month I sneak out of my house early, hoping to avoid the postman. It's credit card bill day, and at 24-years-old I am already a slave to several shiny, innocent-looking pieces of plastic tucked inside my wallet. I certainly don't own a house, in fact, I don't even own a car. All I have to show for my debts are several pairs of beautiful shoes and a university education. But I'm one of an increasing number of people struggling to pay off credit card debts, which soared across Britain by £800 million in May as people tried to make their monthly repayments. Bank sales techniques have been blamed for fuelling a 'buy now, pay later' culture, and credit card debt has recently been implicated in a number of suicides, including that of father-of-two Mark McDonald, aged 43, from Norfolk, whose body was found beside a railway line with a bundle of demands from banks and finance companies detailing credit card and other debts of £65,000. This has led to calls for lending to be curbed and more stringent financial assessments to be put in place. The Consumer Credit Bill currently going through parliament will make it easier for people to successfully take legal action against a lender and update legislation to strengthen the rules governing credit licences, including tougher checks on people who apply for a licence, but it won't make it any harder for us to borrow money. But who's at fault? The lenders for letting us have the cash, or us for borrowing it? There is no doubt that society is becoming increasingly materialistic and consumer-led. Young people are living for the moment, and are often using credit cards and loans to enhance their standards of living. Lifestyle expectations have soared, but wages haven't, and people seem to feel the need to supplement their income. Young women are more likely than ever before to declare themselves bankrupt according to a study by PricewaterhouseCoopers. It claims that high levels of consumer debt - fuelled by reckless spending and easy access to loans - are creating a new category of insolvency in women under 30. When I first signed up for a credit card I borrowed just £500 - it doesn't sound like a lot but my sole income was from a student loan and a Saturday job. The last thing I needed was more debt but I needed the extra money to pay my way through four years at university. However, while I initially used my credit cards to pay for the essentials - books and beer - I hold my hands up and admit that my magic pieces of plastic have, since graduating, paid (in a manner of speaking) for two weeks in the Caribbean, an eMac and a much loved, but totally unnecessary, pair of Gucci sunglasses. As it is, I meet the minimum repayments on my card each month with relative comfort, albeit with slight pangs of guilt. If I continue to pay at that rate it will take me almost 30 years to clear my debt. But what would happen if I lost my job or suffered from ill health? Along with over-spending these are two of the most common causes of credit card debt, according to the Consumer Credit Counselling Service. Like hundreds of others, that was the last thing on my mind when I popped into the bank and signed for my credit card. And in a day and age where credit is so easy to acquire, how many of us really realise, or even contemplate, what we are signing up for? Perhaps I don't really need that pink iPod... Is it time to limit the credit industry? Read the arguments for:
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