Govenrment and Business Environment Case Study

Credit Card Debt in Britain

OR

Abstract:
In 2003, Britain accumulated a lot of credit. According to a Bank of England report, credit card lending formed 7.16% of the total lending to individuals of the UK for the month of September 2003. Along with the increase in credit card lending, credit card debts also increased. The Bank of England revised its interest rate to keep a check on the increasing amounts of debt and inflation. The credit card lenders are dealing aggressively with their customers by going to the courts and also engaging bailiffs. They are also selling the debts to the debt collection agencies.

Pedagogical Objectives:

• To discuss how the problem of accumulating credit card debt is contributing to the increase in the non-performing assets of banks and creating a vicious cycle in the economy
• To discuss what steps the Bank of England can take to deal with the problem.

Keywords : Credit card debt, Interest rate, Debt, Bank of England, Bailiff, Debt recovery,Government and Business Environment Case Study,Net borrowing, Debtor, Creditor, British economy, Cardholders, Debit card, Banking, Lending,Business Environment Case Study, Debt repayments