New credit card business 'falls 11%'

There has been a drop in the number of new credit cards in the UK, new research reveals.

Figures published this week by the Financing and Leasing Association (FLA) indicated that the number of new credit cards in the UK fell by 11 per cent between February 2009 and the same period in 2008.

The group attributed the trend to the fact consumers may be reluctant to commit to repaying credit over the long-term amid rising unemployment and falling consumer confidence.

However, it noted that store installment credit experienced eight per cent growth in February, with interest-free credit and deferred payment options appealing to consumers.

Citing figures from UK payments association Apacs, Credit Action asserted some 235 purchases were made on plastic - a debit or credit card - every second in the UK last year.

Presently, the average credit card limit is approximately £5,129 per person.

The debt charity also suggested that many people in the UK named getting their personal finances in order as one of their top new year's resolutions.