UK commercial banks have finally woken up to the credit card debt crisis. For the last year or so, they have been quietly tightening lending standards. The new regime seems to be working. The stock of outstanding credit card balances is beginning to fall from its peak back in Christmas 2005. Since then, credit card balances have fallen by around 5.9 percent. Nevertheless, the stock of outstanding credit card debt in October 2007 was six times higher than in January 1994.However, Britain's debt addicted credit junkies have gone elsewhere for their fix. Britain's debtors have moved onto the harder stuff. Unsecured loans and home equity withdrawal facilities have never been more popular. Personal sector debt has kept on rising. It is just isn't being charged to the plastic with the same reckless abandon.
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