More people missing payments
(29 January 2008)

More people are missing their monthly credit card payments, with five million British people not paying in the past six months, according to a new report.

Research by Money Expert shows that 11 per cent of people have missed a payment in the past six months, compared to nine per cent in June 2007.

As credit card companies charge £12 a time for missed payments this has meant a windfall for the businesses.

Sean Gardner, chief executive of MoneyExpert.com, said: "Missing a credit card payment comes at a financial cost of £12 a time but there are other factors to consider.

"The effect of a payment can last as long as three years on your credit file and it will be used by firms to decide whether they're going to lend you cash and what they're going to charge."

People in the 25 to 44 age group are most likely to miss payments with about 15 per cent missing one in the past six months.

Research by uSwitch said that one in ten adults spent more than they earn every month, reported the BBC.