Credit card debt is spiraling, but not out of control

The debts of individual customers on credit cards is close to reaching zł.10 billion and is increasing at a pace exceeding 50% per annum. The dynamics of the increase has exceeded the pace of growth of mortgage loans.

According to analysts, rising interest rates might mean that people who took out mortgages might now be looking for cash to pay the installments on credit cards.

An adviser to the govnor of the National Bank of Poland, Wojciech Kwaśniak, declared that credit cards can lead to a worsening of the quality of the credit portfolio of banks.

However, according to data from the Financial Supervisory Commission (KNF), the share of bad debts on credit cards in relation to the whole sector amounted to 6.1% by the end of March and was 0.1% lower than at the end of 2007. Representatives of banks do not fear the situation.

"The debt portfolio on credit cards in our bank is of very good quality, it is stable and in accordance with expectations. We have not noticed any changes in this respect over recent months," said the deputy president of GE Money Bank Scott Jensen.

Source: Parkiet