Credit card regulation 'will help consumers manage finances'

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New government regulations on credit cards could help reduce the number of people seeking debt advice, it has been suggested.

According to a spokesperson for the Consumer Credit Counselling Service CCCS, consumers will be better able to manage their finances if greater restrictions are placed on the market.

The Department for Business Innovation and Skills says unfair charges, unauthorised increases to spending limits and low monthly minimum repayments could all be prohibited as part of an overhaul of the industry.

Commenting on the announcement, the spokesperson said the CCCS welcomes the moves towards greater transparency.

He added: "These developments should make it easier for clients to better understand and manage their credit card debts. Greater consumer awareness of the potential pitfalls of credit and its misuse is definitely needed.

"Currently, people struggling to pay off the minimum or less on their card debts each month are not helped by complicated terms and conditions."

The spokesperson added that the systems in place are "effectively geared" towards keeping consumers in a state of debt for longer.

Jessica Bown, an independent financial journalist who writes for talkaboutdebt.co.uk, recently claimed that serious debt problems can affect an individual's work and quality of life.

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Tags: credit card debts , consumer credit counselling , consumer credit counselling service , financial journalist , business innovation , cccs , debt advice , consumer awareness , debt problems , government regulations , repayments , spokesperson , potential pitfalls , quality of life , credit cards , transparency , consumers ,

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2009-10-29 16:48:21 © Moneyextra.com