05
May
2009
|
00:00
Europe/Amsterdam

North East Tops UK League of Credit Addicts

The North East has the highest number of consumers addicted to credit, a survey by Callcredit Information Group reveals today. Dubbed CHIPS (Credit Happy Individuals with Poor Savings) the survey shows that one in seven (13%) own four or more credit cards and eight in 10 (79%) use all four credit cards regularly to fund their day-to-day outgoings.

The research also shows that the North East has the highest proportion of people paying the minimum requirement each month (10%), and just 37% say they pay off the full balance, compared to an average of 52% nationwide.

Meanwhile, Wales was revealed to be the most financially savvy region in Britain with the most Prudent Individuals and Non-Spenders (PINS):

  • Just 4% rack up excess interest by only paying the minimum balance each month
  • More than four in five would not consider running up more than £1000 on their credit card bills
  • Only 6% own four or more credit cards, the lowest figure of all regions


The national league table of CHIPS and PINS looks at attitudes, behaviours and concerns of UK consumers amid the financial crisis up and down the country and was compiled by Callcredit Marketing Solutions. Other key findings include:

  • London has the highest monthly balances with a third saying that £1000 or more is reasonable
  • The North West is most keen to get rid of its credit cards with 28% considering reducing the number they carry in their wallet
  • In the South West, almost two thirds (59%) always pay off their credit card balance in full


Caroline Worboys, MD of Callcredit Information Group Marketing Solutions, says:
"The days of plenty have gone, but the sad reality is that too many CHIPS still rely on their credit cards to carry them through the tough times. There will be difficult months ahead, particularly for those adopting a PINS lifestyle in an attempt to become debt-free."

CHIPS and PINS national league table

Ranking Region CHIPS vs. PINS score
(out of a total 44 points)*
1 North East 36 CHIPS
2 London 35
3 North West 33
4 Scotland 33
5 South East 31
6 East Midlands 30
7 West Midlands 27
8 Yorkshire and The Humber 14
9 South West 13
10 East of England 13
11 Wales 11 PINS

* The score is based on each region's ranking by the following four questions:

  • % of people owning four credit cards or more
  • I pay my credit card balance in full each month
  • I only ever pay the minimum amount on my credit card
  • More than £1000 is a reasonable balance to have on my main credit card when I receive my monthly bill


Regional breakdown by key statistics

North East North West Yorkshire and The Humber East Midlands West Midlands East of England
I own four credit cards or more 13% 13% 10% 21% 12% 11%
I pay my credit card balance in full each month 37% 46% 54% 57% 53% 58%
I only ever pay the minimum amount on my credit card 10% 6% 5% 8% 6% 7%
Between £500-£1000 is a reasonable balance to have on my main credit card when I receive my monthly bill 11% 8% 20% 28% 22% 10%
More than £1000 is a reasonable balance to have on my main credit card when I receieve my monthly bill 23% 28% 20% 25% 29% 16%
I am considering  reducing the number of credit cards I use 20% 28% 26% 16% 23% 14%
London South East South West Wales Scotland
I own four credit cards or more 14% 20% 13% 6% 13%
I pay my credit card balance in full each month 48% 55% 59% 54% 48%
I only ever pay the minimum amount on my credit card 6% 8% 3% 4% 9%
Between £500-£1000 is a reasonable balance to have on my main credit card when I receive my monthly bill 13% 22% 18% 26% 18%
More than £1000 is a reasonable balance to have on my main credit card when I receieve my monthly bill 34% 26% 21% 17% 23%
I am considering  reducing the number of credit cards I use 21% 21% 17% 13% 24%

ENDS


About the Callcredit Information Group
Callcredit Information Group brings together experts across the fields of credit referencing, marketing services, interactive solutions and consultative analytics to enable our client base of businesses and consumers to make informed decisions using our innovative products and services. The group is made up of two complementary divisions:
  • Marketing Solutions, providing specialist knowledge in customer analytics, consumer targeting, database building and hosting, marketing communications, business modelling and market analysis through three market leaders in their own fields: EuroDirect, Broadsystem and GMAP Consulting.
  • Credit Solutions, encompassing Callcredit, Legatio and DecisionMetrics - specialists in credit risk, ID verification services and tracing tools.