With the recent dramatic developments in the global economy the UK card market is going to go through a severe shake up in 2009 and 2010. This report offers an insight into what shape these changes will take, and the impact on the cards industry through to 2010. By using the most up to date market indicators this report highlights what will be the key influencers in a challenging environment.
Scope
Part of the UK Plastic Cards series this report provides insight into what impact the recession will have on the cards market
Using the latest figures, the report focuses on the likely impact from the rise in unemployment on write-offs and repayments
Other key indicators covered in this report include rising rates of household debt, and consumer shifts to recessionary behaviour
By using the latest available market data the report offers concrete signs of the early impact of the downturn, and likely future outcomes
Highlights
With rising levels of unemployment the UK cards market is faced with a ticking time bomb. Despite a stagnating economy, the UK credit card market remained buoyant until unemployment began to rise. With unemployment estimated at 2.2m and rising this will impact at all levels of the cards market as balances rise and card write-offs increase.
Levels of household consumer debt have risen to problem levels during recent years, despite an economic boom. Now faced with a worsening climate, many consumers already on the brink of insolvency will be pushed over the edge. Even for non-insolvent cardholders, balances are growing while repayment rates decline to problem levels for issuers.
Consumer behaviour is changing faster than the rate of economic slowdown. Spending levels, and transaction values began to fall before the full impact of the downturn was felt by consumers. Now that consumers are feeling real hardship spending levels will continue to decrease as consumer confidence remains low.
Reasons to Purchase
Understand the dramatic changes affecting the cards industry, with the latest available market data providing real world insight
Learn what are the key factors that will shape the UK cards market through the downturn and the likely shape of the market in the future
Develop strategies for dealing with the impact of the global downturn by having an accurate account of what is happening now
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