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More Britons going interest free

Published: 10 December 2008 in Credit Cards

The number of adults in the UK applying for an interest free credit card increased by more than 15.6 per cent in November, new figures suggest.

According to research by MoneyExpert, the number of applications last month was 22 per cent higher than in October, thought to be due to consumers planning their Christmas spending on plastic this year as the credit crunch continues to bite.

Furthermore, 30 per cent of adults were revealed to be concerned about their ability to manage their personal debt, while 27 per cent of those already owing money have found themselves falling further into the red over the last three months.

Sean Gardner, director of MoneyExpert.com, said: "The spending habit hasn't died yet and the price-cutting frenzy on the high street shows that there are plenty of bargains out there with big name stores offering massive reductions."

Meanwhile, Fairinvestment.co.uk has revealed that 12 months ago, 34 per cent of Britons believed the base rate of interest would now stand at five per cent or above.

In reality, the Bank cut it last week to just two per cent.

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